Scarnose Inter. (543537)

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

Key Financials

Strengths

• Reported profit growth of 100%, though likely on a very low base
• Piotroski F-Score of 6/9 suggests some basic financial health signals are positive
• Trading at the top of its 52-week range, indicating strong current market interest
• Latest quarter sales of ₹8 Cr show the business is still generating revenue

Concerns

• Sales growth is sharply negative at -15.98% while latest quarter net profit is ₹0 Cr
• P/E of 104.09 is extremely expensive for a business with negligible profitability
• ROCE of only 2.59% and zero dividend yield mean poor return on capital and no cash return
• Critical data missing — book value, ROE, debt/equity, and promoter holding — so a margin of safety cannot be estimated

AI Analysis

At ₹113.30, Scarnose Inter. is a microcap with a market cap of just ₹37 Cr. I cannot get excited. The P/E of 104 means I am paying over a hundred years' worth of current earnings. But what earnings? Profit growth of 100% sounds impressive until you see the latest quarter net profit is ₹0 Cr and sales declined nearly 16%. A 100% profit increase from a negligible base is arithmetic, not business quality. ROCE is only 2.59%, far below what a boring textile business should generate, and no dividend means minority shareholders get no cash while waiting. Graham would demand tangible evidence of intrinsic value; with book value, promoter holding, and debt-to-equity all unavailable, I cannot even perform a basic balance sheet check. The Piotroski F-score of 6/9 is mildly encouraging, but that is an accounting screen, not a moat. Selling other textile products in a competitive global industry offers no pricing power. The 52-week range shows the stock has doubled from ₹44 to ₹113.30, but a rising price without rising reported sales is speculation, not investment. The PEG ratio of 1.04 relies on a 100% growth number that is unsustainable and misleading. Could this be a turnaround? Possibly, but I need proof of durable margins, positive net profit at a meaningful level, and honest capital allocation. At this price, I see risk, not reward. I would rather wait on the sidelines. In Buffett's words: be fearful when others are greedy. Mr. Market is feeling very greedy today; I am not.

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