Stellar Capital (536738)

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

Key Financials

Strengths

• Latest quarter earned ₹1 Cr net profit on ₹2 Cr sales, showing recent operational profitability if sustained.
• Sales growth of 6.58% is positive and suggests the revenue base is not contracting.
• At ₹4.50, the stock is at the bottom of its 52-week range (₹4.50–₹7.95), so expectations are low.
• A ₹12 Cr market cap means a relatively small absolute earnings improvement could move per-share value meaningfully.

Concerns

• Profit growth has fallen 64.15%, indicating severe deterioration in earning power.
• ROCE of 0.45% is far below any reasonable cost of capital; existing capital is being used inefficiently.
• P/E is 0.00 and book value, ROE, debt/equity and promoter holding are unavailable, so the investment cannot be properly valued or monitored.
• Piotroski F-Score of 4/9 points to weak financial health across profitability, leverage and operating efficiency.

AI Analysis

At ₹4.50, Stellar Capital is a ₹12 crore micro-cap trading at the bottom of its 52-week range. In the latest quarter it earned ₹1 crore on sales of ₹2 crore, and annual sales growth is 6.58%. But that is where the appeal ends. Reported P/E is 0.00, book value, ROE, debt/equity and promoter holding are all unavailable. Graham taught that when the numbers are missing or inconsistent, you have no margin of safety. A Piotroski score of 4 out of 9 reinforces the suspicion that the balance sheet and operating efficiency are weak. ROCE is just 0.45%, meaning the business generates less than half a percentage point of return on capital employed; this destroys value instead of compounding it. Meanwhile, profit growth has collapsed by 64.15%. One profitable quarter and a modest sales number cannot convince me. The positive sales growth is a small sign of life, but the trend is in the wrong direction. In this kind of situation I look for a catalyst: asset sales, a change in capital allocation, improved disclosure, or several consecutive quarters of rising earnings. None of those facts are present. The stock is at its 52-week low, so the market is already punishing it, but a low price is not the same as an undervalued price. Without book value or promoter details, I cannot assess downside protection or whether management is aligned with minority shareholders. This is not a business I would own until it proves it can generate returns above the cost of capital. At best, it is a speculative turnaround idea, not an investment.

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