Soni Medicare (539378)

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

Key Financials

Strengths

• ROCE is positive at 6.64%, indicating some operating return before interest and tax despite the net loss.
• Book value is positive at ₹2.88 per share, providing a small stated equity base.
• Latest quarter sales of ₹6 Cr show the hospital still has a revenue base.
• Small market cap of ₹12 Cr creates optionality if a financial recovery actually starts.

Concerns

• Negative earnings with a P/E of 0.00 and latest quarterly net loss of ₹1 Cr.
• ROE at -162.81% and profit growth at -769.23% show severe value destruction.
• Sales declined 27.47% and Piotroski F-Score is a weak 3/9.
• Valuation is rich at 9.20 times book value with no dividend, while promoter holding and debt/equity details are undisclosed.

AI Analysis

Friend, this is exactly the kind of stock I would toss aside. Soni Medicare sells at ₹26.49 with a market cap of ₹12 crore, but earns no profits: P/E is zero and the latest quarter shows a net loss of ₹1 crore on sales of ₹6 crore. Graham would demand a margin of safety; here the price is 9.2 times book value of ₹2.88, offering none. Return on equity is -162.81%, destroying shareholder capital. Sales shrank 27.47% and profit growth collapsed 769.23%. The Piotroski F-score of 3/9 confirms poor financial health. With no dividend and no promoter holding data, I have no reason to trust management either. One positive: ROCE is 6.64%, suggesting operations can cover capital employed before interest and taxes, so the business is not entirely value-destroying at the operating level. But a hospital needs steady cash flows, not falling revenue and continuous losses. The 52-week range of ₹43.82 to ₹114.15 tells me this is a falling knife; the market is repricing it lower. A true investor waits for profitable operations, a cleaner balance sheet, and a price well below conservative book value. This is not an asset play because price is far above book; it is not a grower because sales and profits are going backwards. It might be a turnaround candidate someday, but I need evidence, not hope. I would rather watch from the sidelines. When the fundamentals improve—positive earnings, stronger ROE, positive F-score—then I will consider it. Until then, risk is high and reward is speculative. I pass.

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