Toyam Sports (538607)

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

Key Financials

Strengths

• Price-to-book of 0.60 means the market is pricing the stock at a 40% discount to stated book value of ₹5.87.
• Market cap of ₹211 Cr against implied book value of roughly ₹350 Cr provides a potential asset cushion.
• ROE of -2.50% and ROCE of -3.64% suggest losses are relatively modest compared to the size of the book value.
• The stock trades at the top of its 52-week range, showing some market interest despite poor fundamentals.

Concerns

• Latest quarter had only ₹1 Cr of sales but a net loss of ₹8 Cr, indicating severe earnings weakness.
• Piotroski F-Score of 3/9 points to weak overall financial health and poor operational efficiency.
• Zero sales growth, zero profit growth, and zero dividend mean there is no evidence of value creation for shareholders.
• Promoter holding is N/A and FairStock Score is INSUFFICIENT_DATA, raising transparency and governance concerns.

AI Analysis

As a Graham-style investor, I start with the balance sheet, not the income statement. Toyam Sports trades at ₹3.53 against book value of ₹5.87, a price-to-book of 0.60. That means the market is offering me a 40% discount to stated net worth. With a market cap of ₹211 Cr, the implied equity book is roughly ₹350 Cr. That looks like a margin of safety. But Graham warned that a discount is only real if the assets are real and management is honest. Here, the latest quarter shows just ₹1 Cr of sales and a net loss of ₹8 Cr. The P/E is meaningless because there is no earnings power. ROE is -2.50% and ROCE is -3.64%; the business is destroying value, not compounding it. Sales growth and profit growth are zero, there is no dividend, and the Piotroski F-Score of 3/9 tells me financial health is poor. This is not a wonderful business at a fair price; it is a possible asset situation at a cheap price. I would not call it a stalwart or a grower. If the loss is temporary, the book value cushion protects the downside. If the loss continues, that ₹5.87 book value will shrink every year. Promoter holding is not available, and for a stock this speculative that is a red flag. I need audited asset quality, a clear plan, and evidence of cash generation before I commit. As Buffett says, it is far better to buy a wonderful company at a fair price than a fair company at a wonderful price. This may be a fair company; I need proof.

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