Remedium Life (539561)

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

Key Financials

Strengths

• Latest quarter generated ₹111 Cr sales and ₹9 Cr net profit, implying a reasonable net margin for a distributor.
• Book value is positive at ₹0.82 per share, so the company is not insolvent.
• The scale of quarterly sales suggests an active distribution business with meaningful transaction volumes.
• The stock is at its 52-week high, indicating strong market interest, though this is not a fundamental strength.

Concerns

• ROE is -4.73% and ROCE is 0.00%, showing poor returns on shareholder capital.
• P/B of 19.50 against book value of ₹0.82 leaves absolutely no margin of safety.
• Piotroski F-Score of 2/9 signals weak financial health and potential accounting or operational stress.
• Sales growth, profit growth, and dividend yield are all 0.00%, and promoter holding is not disclosed, creating further uncertainty.

AI Analysis

At ₹15.99, Remedium Life has a market capitalisation of ₹645 Cr against a book value of just ₹0.82 per share. That puts the price-to-book at 19.50. Benjamin Graham taught me that buying a business at a huge premium to its tangible value is a speculation, not an investment. The returns do not support this valuation. Return on equity is -4.73%, and ROCE is 0.00%; the business is not earning an acceptable return on the capital it uses. The latest quarter shows sales of ₹111 Cr and net profit of ₹9 Cr, which works out to an 8.1% net margin. That is a bright spot, but one quarter is not proof of durable earning power. Sales growth is 0.00%, profit growth is 0.00%, dividend yield is 0.00%, and the Piotroski F-score is only 2 out of 9. Such a weak score tells me the financial health is fragile. The 52-week range, from ₹0.32 to ₹15.99, shows a stock that has moved like a speculative lottery ticket, not a stable business. With a P/E of 28.16 and no growth, the price already discounts huge future performance. In a trading and distribution company, there is little moat, pricing power, or customer loyalty. I want margin of safety. At 19.5 times book and with negative return on equity, that safety is absent. I would need years of consistent profitability, visible promoter holding, and a clean balance sheet before I can call this an investment. Until then, it fails every test I apply.

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