Vikram Kamats (539659)
CyclicalScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹62.52 |
| Market Cap | ₹93.61 Cr |
| P/E Ratio | 1,000 |
| ROCE | 4.31% |
| ROE | 8.84% |
| Dividend Yield | 0.55% |
| Profit Growth | -185.69% |
| Debt/Equity | — |
| Sales Growth | 34.62% |
| 52-Week Range | ₹30.2 — ₹67.44 |
| Sector | Leisure Services |
| Book Value | ₹15.91 |
Strengths
- Revenue growth of 34.62% shows healthy demand for the restaurant chain.
- Latest quarterly sales of ₹14 Cr indicate a meaningful operating scale.
- Positive book value of ₹15.91 per share offers a tangible asset floor.
- The company trades within its 52-week range, not in a speculative melt-up.
Concerns
- P/E of 1000 and PEG of 28.89 reflect extreme valuation versus current earnings.
- Latest quarter net loss of ₹2 Cr on ₹14 Cr sales, with profit growth down -185.69%.
- ROCE of 4.31% is below risk-free fixed deposit rates, showing poor capital efficiency.
- Piotroski F-score of 4/9 and missing debt/equity and promoter holding data raise governance and transparency questions.
AI Analysis
At ₹62.52, this restaurant business commands a market cap of ₹94 crore. Yet the P/E of 1000 tells me the market is paying a heavy price for negligible earnings. Graham taught me to weigh the price against measurable value. Book value is ₹15.91, so I am being asked to pay 3.93 times book for a company whose latest quarter produced ₹14 crore sales but a ₹2 crore net loss. Sales growth of 34.62% sounds encouraging, but profit growth of -185.69% is a loud warning. The company is expanding at the expense of shareholder returns. Return on equity is 8.84%, and return on capital employed is a weak 4.31%—below what I could get from a fixed deposit. The Piotroski F-score of 4 out of 9 signals financial stress. With a dividend yield of just 0.55%, I am not being paid to wait. The debt/equity is not available, which itself is a transparency concern. A PEG of 28.89 tells me the growth is already priced in. In the restaurant industry, moats are narrow and taste can change. I see no durable competitive advantage here. I would need a deep discount to the intrinsic value to take on this risk. At the current price, I find no margin of safety. This looks like a cyclical business passing through a difficult phase, and I prefer to wait for better numbers—especially consistent profits and evidence that capital is being deployed wisely. Until then, I will keep this on my watch list, not in my portfolio.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer