Celebrity Fash. (CELEBRITY)

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

Key Financials

Strengths

• Sales growth of 18.92% shows some top-line traction.
• Latest quarter sales of ₹45 Cr provides a base of operating scale.
• Book value is positive at ₹3.55 per share, so there is an equity cushion despite losses.
• Price near the lower end of the 52-week range reduces some speculative froth.
• Promoter holding of 33.42% gives owners some skin in the game.

Concerns

• ROE of -76.51% and ROCE of -13.18% indicate severe value destruction.
• Debt/Equity of 5.65 is dangerously high and threatens solvency.
• Latest quarter net loss of ₹3 Cr on ₹45 Cr sales shows weak conversion ability.
• Piotroski F-Score of 3/9 and zero dividend signal poor financial health for shareholders.

AI Analysis

This business fails my first test: I want a company I can understand and whose numbers tell a consistent story. Celebrity Fashions sells garments, but the financials are anything but elegant. Sales grew 18.92%, and the latest quarter revenue was ₹45 crore, yet the company still lost ₹3 crore in that quarter. A company that cannot turn growing revenue into profit is merely growing its problems. The quoted P/E of 0.00 is not cheap; it is meaningless because earnings are negative. Return on equity is a devastating -76.51%, and return on capital employed is -13.18%. Every rupee of equity and capital is being destroyed. The balance sheet is the bigger red flag: debt/equity of 5.65 is far beyond what I would tolerate in a capital-light garment business. Book value is ₹3.55, but the market price is ₹7.74, a P/B of 2.18 despite negative returns. Benjamin Graham would say you should not pay a premium for a business earning negative returns on book value. The Piotroski F-Score of 3/9 confirms poor financial health. Promoter holding of only 33.42% means outsiders control most of the company, and with no dividend, minority shareholders receive nothing while waiting. There is no margin of safety. The price is near the lower end of its 52-week range, but a falling knife has no handle. Positive sales growth is not enough to offset leverage and losses. This is a possible turnaround only if management repairs the balance sheet and turns in positive operating profits. Until then, I will watch from the sidelines.

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