Consecutive Commodities (539091)

FairStock Score: 60/100 — STEADY

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

Key Financials

Strengths

• Trailing P/E of 5.79 is optically cheap if the reported earnings are genuine
• Sales growth of 317.57% shows a sharp expansion in business activity
• Reported ROE of 14.86% and ROCE of 14.22% indicate some capital efficiency on a small book value base
• FairStock Score of 60/100 suggests the stock is rated as steady rather than distressed

Concerns

• Price-to-book of 38.17 means paying ₹38 for every ₹1 of net worth; book value is just ₹1.09 per share
• Latest quarter shows net profit of ₹0 Cr on sales of ₹16 Cr, and profit growth is down 58.54%
• Piotroski F-score of 4/9 signals weak financial health and possible earnings quality issues
• Dividend yield is 0.00%, so shareholders receive no cash return while waiting

AI Analysis

Let me evaluate this as a business, not a ticker. Consecutive Commodities is an investment/commodity-trading outfit. I start with the balance sheet, as Graham taught. The market cap is ₹699 Cr but the book value is ₹1.09 per share — so the market is paying 38.17 times book. That leaves almost no margin of safety. The P/E of 5.79 looks cheap, but I don't trust it. A P/E of 5.79 on ₹699 Cr implies trailing net profits of around ₹120 Cr, while the book value and ROE of 14.86% point to only about ₹2.7 Cr of profit. That enormous gap tells me the earnings may be nonrecurring, mark-to-market, or related to one-time gains. The latest quarter confirms my caution: sales of ₹16 Cr and net profit of ₹0 Cr. Profit growth is down 58.54%, and the Piotroski F-score is a weak 4 out of 9. The PEG ratio of 0.02 is meaningless when reported profit growth is negative. This is not the profile of a durable, predictable enterprise. There is no economic moat here; commodity and investment businesses are price-takers, and with a dividend yield of 0.00%, we get no cash return while waiting. Sales growth of 317.57% is impressive on the surface, but it is meaningless if the bottom line collapses. The stock has moved from ₹0.68 to ₹41.60 in a year — that is speculative, not investment. I would classify it as a cyclical, perhaps a turnaround, but the figures do not support paying 38 times book for a business with zero latest-quarter earnings. I will wait until the financials add up and the earnings prove repeatable. If the P/E is real, the book value needs to catch up; if not, this is a value trap. My decision: pass.

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