Golden Crest (540062)

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

Key Financials

Strengths

• Positive book value of ₹21.57 per share provides a tangible net asset floor, even though the current price is 3.68 times book.
• ROE and ROCE, while low, are positive at 1.29% and 2.05%, so the business is not currently destroying book value through losses.
• Annual sales and profit growth are reported as flat at 0.00% rather than negative, indicating a stable base, though the latest quarter casts doubt on that stability.
• The small market cap of ₹42 crore means a revival in education-related revenue could have a disproportionate impact on per-share value.

Concerns

• Extremely high P/E of 968.07 and PEG of 77.45 imply the valuation has no support from current earnings.
• Latest quarter shows zero sales and zero net profit, suggesting no active business or a major operational halt.
• Piotroski F-Score of 4/9 indicates weak financial health.
• Price of ₹79.40 versus the 52-week range of ₹224.80-373.40 is a red flag, either indicating a severe de-rating or possible data inconsistency.

AI Analysis

At ₹79.40, Golden Crest has a market capitalisation of just ₹42 crore. But the 52-week range of ₹224.80 to ₹373.40 tells me this is not a calm, quiet stock; it has already been through a serious shellacking. The trouble is, the lower price still does not make it cheap. The company earned almost nothing—ROE is 1.29% and ROCE is 2.05%. A fixed deposit would give me more for less risk. Sales and profit growth are both zero, and the latest quarter shows zero sales and zero net profit. There is no dividend yield to compensate me while I wait. This is not the kind of business Graham would want me to own. Let me test the balance sheet. Book value is ₹21.57 per share, so at ₹79.40 I am paying 3.68 times book for a business that generates a return on equity of barely over one percent. That fails every margin-of-safety test I know. The P/E of 968.07 and PEG ratio of 77.45 are meaningless except as warnings; they tell me current earnings cannot support the price. The Piotroski F-score is only 4 out of 9, which suggests weak financial health, not a company in the early stage of compounding. Some might call this a turnaround because the price is down so sharply. But a falling stock is not a catalyst. Without evidence of resumed sales, a credible profit plan, or a clearer view of the debt and promoter holding, buying this today is speculation. In Buffett's language, it's a cigar butt with one puff left—and even that puff is unconfirmed. I need either a much cheaper price relative to book, or evidence that the education business is actually operating again. Until then, I will remain on the sidelines.

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