7NR Retail Ltd (540615)

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

Key Financials

Strengths

• Trades at 0.66 times book value with book value of ₹10.46 per share, offering a potential margin of safety if assets are real.
• Low P/E of 5.82 suggests the stock is inexpensive on trailing earnings.
• Sales growth of 442% shows clear business momentum and expanding revenue base.
• Small market cap and low absolute price leave room for a catalyst-driven re-rating if profitability improves.

Concerns

• Latest quarter shows ₹3 crore sales and ₹0 crore net profit; profit growth is 0%, so revenue growth is not converting into earnings.
• ROE of 6.40% and ROCE of 2.16% reflect weak capital efficiency and little competitive protection.
• Piotroski F-score of 4/9 points to fragile financial health.
• Promoter holding is not available and there is no dividend, making governance and shareholder alignment difficult to assess.

AI Analysis

At ₹6.86, this is a ₹19 crore micro-cap in specialty retail. The immediate attraction for a value investor is the balance sheet: book value is ₹10.46, and the stock trades at a P/B of just 0.66. Paying 66 paise for a rupee of book value is the kind of margin of safety Graham would notice. But I must ask whether the book value can produce returns. ROE is only 6.40%, and ROCE is 2.16%. Those are weak numbers. They suggest this is not a wonderful business with pricing power; it is an ordinary retailer competing on margins, with no visible moat. If assets cannot earn a decent return, a discount to book can be an illusion. The growth picture needs caution. Sales grew 442%, yet profit growth is 0%, and the latest quarter had ₹3 crore of sales and zero net profit. That is revenue expansion without shareholder earnings. The PEG of 0.01 is misleading because it is based on sales growth, not on real profit growth. A P/E of 5.82 looks low, but with the latest quarter at breakeven, the 'E' may not be durable. The Piotroski F-score of 4/9 reinforces my worry about financial health. There is no dividend, and promoter holding is not available, so I cannot evaluate alignment. I would classify this as an asset play, not a fast grower. Before acting, I would need to verify asset quality, examine cash flows, and see a clear path to positive net profit. Until then, this is a deep-value candidate, not a compounder.

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