New Light Industries (540243)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

When I look at New Light Industries, I am reminded of my rule: it is far better to buy a wonderful company at a fair price than a fair company at a wonderful price. This is neither. This is a trading and distribution outfit with no apparent economic moat, and the figures paint a grim picture. Sales have fallen by 82.02%, and profit growth has plunged by 96.36%. The latest quarter shows sales of just ₹1 Cr and net profit of roughly zero. As Graham would say, this stock is not an investment – it is a speculation. The financial health is poor: book value is ₹1.45 per share, yet the stock trades at ₹29.80, a P/B of 20.55. Return on equity is only 4.49%, and the Piotroski F-Score of 3/9 signals deteriorating fundamentals. The company appears debt-free, which is a small positive, but ROCE of 9.56% cannot justify a market capitalisation of ₹261 Cr while generating negligible profits. A P/E of 21.18 is meaningless when earnings are collapsing. And with zero dividend yield, the investor is entirely dependent on price appreciation – the most dangerous kind of hope. The 52-week range of ₹1.09 to ₹29.80 shows speculative frenzy, not value creation. I cannot find any margin of safety. This is a clear pass.

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