New Light Industries (540243)
CyclicalScore breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹29.8 |
| Market Cap | ₹261.05 Cr |
| P/E Ratio | 21.18 |
| ROCE | 9.56% |
| ROE | 4.49% |
| Dividend Yield | 0% |
| Profit Growth | -96.36% |
| Debt/Equity | — |
| Sales Growth | -82.02% |
| 52-Week Range | ₹1.09 — ₹29.8 |
| Sector | Commercial Services & Supplies |
| Book Value | ₹1.45 |
Strengths
- No reported debt (D/E N/A), suggesting a debt-free or minimally leveraged balance sheet
- ROCE of 9.56% is higher than ROE, indicating some operational efficiency in capital usage
- Positive book value of ₹1.45 provides a small tangible asset floor
- Trading business model with low capital intensity could theoretically recover quickly if demand returns
Concerns
- Sales declined 82.02% and profits fell 96.36%, signalling a severe business contraction
- Latest quarter sales of ₹1 Cr and net profit of ₹0 Cr show income generation has almost stopped
- P/B of 20.55 and P/E of 21.18 are unjustifiable given book value of ₹1.45 and collapsing earnings
- Piotroski F-Score of 3/9, zero dividend yield, and undisclosed promoter holding raise governance and financial red flags
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer