Bharat Parenter. (541096)

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

Key Financials

Strengths

• Positive book value of ₹503.30 per share provides some tangible asset backing.
• Latest quarterly sales of ₹65 Cr show the business still has an operating revenue base.
• Trading at the top of its 52-week range reflects strong current market interest.
• Pharmaceuticals is a durable industry, though company-specific fundamentals remain weak.

Concerns

• Negative earnings: latest quarter net loss of ₹10 Cr, P/E is zero, and profit growth is -162.87%.
• Poor capital productivity: ROE is only 5.23% and ROCE is negative at -4.38%.
• Declining sales: revenue growth is -9.78%, indicating a shrinking topline.
• Expensive valuation: P/B of 3.03 with negligible dividend yield of 0.09% leaves no margin of safety.
• Piotroski F-Score of 2/9 signals weak financial health and rising distress risk.

AI Analysis

At ₹1,525, Bharat Parenter asks me to pay ₹1,051 crore for a pharmaceutical company that lost ₹10 crore in the latest quarter on ₹65 crore of sales. Graham would say the P/E is worthless when earnings are negative, and the P/B of 3.03 shows I am paying a large premium over the ₹503.30 book value. That premium might be acceptable for a wonderful business, but this is not one by the numbers. ROE is just 5.23%, ROCE is minus 4.38%, sales fell 9.78%, and profit growth collapsed 162.87%. In other words, the company is getting less efficient while the stock has rallied from ₹880 to ₹1,525. The Piotroski score of 2 out of 9 reinforces that financial health is poor. The dividend yield of 0.09% means I get no income to wait for a rebound. I look for a margin of safety: a price low enough to protect me from error. At three times book for a loss-making, shrinking-topline business, there is no margin of safety. Perhaps this is a genuine turnaround one day; turnarounds often look like this early on. But the burden of proof is on the business, not on my imagination. I want to see positive quarterly earnings, a reversal in revenue decline, and ROCE moving above zero before I call it a value candidate. Until then, this belongs on the 'too hard' pile. As Buffett says, be fearful when others are greedy. The market is greedy here; I am fearful.

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