Facor Alloys (532656)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹6.92 |
| Market Cap | ₹135.32 Cr |
| P/E Ratio | 0 |
| ROCE | -2.63% |
| ROE | -9.02% |
| Dividend Yield | 0% |
| Profit Growth | -181.53% |
| Debt/Equity | — |
| Sales Growth | 0% |
| 52-Week Range | ₹1.81 — ₹6.92 |
| Sector | Ferrous Metals |
| Book Value | ₹6.73 |
Strengths
- Market price of ₹6.92 is close to book value of ₹6.73, providing a reference point for asset backing.
- Small market cap of ₹135 Cr means a successful operational revival could offer meaningful upside.
- Stock has recovered from a 52-week low of ₹1.81 to ₹6.92, suggesting some market optimism or external interest.
- No dividend payout conserves cash during a distressed phase.
Concerns
- Latest quarter has zero sales and a net loss of ₹4 Cr, indicating no active revenue generation.
- ROE of -9.02% and ROCE of -2.63% show shareholder capital is being eroded.
- Piotroski F-Score of 2/9 signals poor financial health and high distress risk.
- Profit growth of -181.53% and meaningless P/E reflect ongoing losses, not temporary weakness.
AI Analysis
At ₹6.92, Facor Alloys sells almost exactly at its stated book value of ₹6.73. But as Graham taught, a stock near book value is only interesting if the book is earning its keep. Here it is not. Return on equity is minus 9.02%, return on capital employed is minus 2.63%, and the latest quarter shows zero sales and a ₹4 crore loss. This is not a temporary blip; the Piotroski F-Score of 2 out of 9 flags deep financial distress. There is no moat in ferro alloys unless you have cost advantages or captive raw materials, and nothing in these figures suggests any pricing power. The P/E of 0.00 is meaningless because there are no earnings. Profit growth of -181.53% tells me the trend is going sharply in the wrong direction. Some might call this a cigar butt, but with zero revenue, there may not be one puff left. The stock has risen from ₹1.81 to ₹6.92, but price action is not evidence of value. In Buffett's language, this is a business whose assets are not productive. Buying at a 3% premium to book with negative returns offers no margin of safety. In fact, book value itself may be overstated if assets are impaired. For an Indian retail investor, this looks like speculation, not investing. I would wait for a clear turnaround signal or a deeper discount to liquidation value. As of today, Facor Alloys fails every quality test I care about.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer