Alchemist Corp. (531409)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹12.25, Alchemist Corp. looks superficially like a Graham special: the stock trades at 38% of stated book value of ₹32.10 per share, with a market cap of just ₹6 Cr. But an asset play is only worth taking if the assets can produce earnings or be liquidated. Here I see no earnings power. The P/E is meaningless at 0.00, sales are flat at 0.00%, and the latest quarter shows ₹2 Cr of sales with a ₹1 Cr loss. The return on equity is an appalling -20,516.93%, and ROCE is -7.45%. This is not a business temporarily out of favor; it is a business destroying shareholder equity. The Piotroski F-Score of 2/9 reinforces that: on nine financial-strength checks, this company fails seven. There is no dividend to compensate me while I wait, no promoter holding data, and debt/equity is not available—so I cannot assess the balance-sheet risk. To pay ₹12.25 for a book value of ₹32.10, I need confidence that book value is real and eventually recoverable. But commodity chemicals gives Alchemist no pricing power, and with profit down -2,633.33%, the trend is the wrong direction. Ben Graham would have called this a cigar butt—maybe one puff left—but with negative margins and falling profits, even the puff is uncertain. A 62% discount to book is meaningless if assets are impaired or non-earning. I cannot categorically rule out an asset play, but the burden of proof is on management, not on me. I would wait for evidence of positive cash flow, a credible turnaround, or a liquidation catalyst. Until then, this is a pass. I would rather miss a speculative turn than lose capital in a value trap.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer