Mayur Leather (531680)

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

Key Financials

Strengths

• Positive book value of ₹1.89 per share, so reported net worth is not wiped out.
• ROCE of 4.66% is positive, indicating the existing capital base still earns a small operating return.
• Zero dividend payout conserves cash at a time when the latest quarter shows zero profit.
• Tiny ₹3 Cr market cap leaves room for a future operational turnaround if sales restart.

Concerns

• Latest quarter sales and net profit are ₹0 Cr — the business appears dormant.
• Profit growth of -125% and Piotroski F-Score of 3/9 signal severe financial deterioration.
• At ₹6.73, the stock is below the stated 52-week low of ₹12.57, raising doubts about quote reliability and liquidity.
• P/B of 3.56 means investors pay a premium to book value of ₹1.89 despite no dividend and collapsing earnings.

AI Analysis

Reading the numbers on Mayur Leather, I see a business that fails almost every test I would apply. At ₹6.73 with a market cap of just ₹3 Cr, this is a microcap, but small size alone is not a reason to buy. The price-to-earnings ratio of 26.64 makes no sense when profit growth is -125% and the latest quarter shows sales and net profit of ₹0 Cr. When revenues vanish, a low absolute price is not cheap; it is a warning. Graham would ask for evidence of earning power. There is none. The ROE of 145.06% looks spectacular, but with ROCE only 4.66%, that gap tells me the equity base is tiny and the company is not generating meaningful returns on actual capital. A Piotroski F-Score of 3/9 reinforces deteriorating fundamentals. The stock trades at 3.56 times book value of ₹1.89, so I am asked to pay a premium for a business whose profits are collapsing and whose top line is zero. Also, the current price of ₹6.73 is below the stated 52-week range of ₹12.57-₹29.63. That is a red flag: either the quote is stale, liquidity is nonexistent, or the data are unreliable. There is no dividend to compensate me while I wait. Promoter holding is not available, and the FairStock score is N/A for insufficient data, so I cannot judge whether owners are aligned. In Mr. Market's terms, this is a business in distress, not a bargain. I would need years of stable earnings, net cash, and management integrity before considering it. None of those are visible. The price may be tempting to speculators, but as an investor, I prefer a wonderful company at a fair price; Mayur Leather is a questionable company at any price.

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