Chandrima Mercan (540829)

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

Key Financials

AI Analysis

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

This company looks like the kind of stock Graham would tell me to put back on the shelf. Chandrima Mercan is a trading and distribution business—there is nothing proprietary about that model. The numbers confirm it: ROCE is just 0.90%, ROE 4.44%. A business that earns 4.44% on equity and less than 1% on capital employed is not a wealth compounder, regardless of the story. The market, however, is paying a rich price: P/E 50.26 and P/B 10.39, while book value is only ₹2.74. At ₹28.47, you are paying more than ten times book for a business that struggles to earn its cost of capital. The supposed growth is inflated. Sales jumped 93.60%, but profit growth is only 2.50%, and the latest quarter shows sales of ₹12 Cr and net profit of ₹0 Cr. That top line is not reaching the bottom line—a big red flag. The F-Score of 7/9 does show some improvement in financial signals, but I don't buy a stock solely because a scorecard improved. There is also no dividend and no promoter-holding disclosure. The 52-week range of ₹3.26 to ₹28.47 suggests this is a speculative micro-cap move, not an investment. In Graham's language, price is what you pay; value is what you get. Here, the value is not visible. I would wait until margins improve, earnings catch up with sales, and the price offers a margin of safety. Until then, this belongs in the too-hard pile.

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