CLC Industries (CLCIND)

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

Key Financials

Strengths

• Sales growth of 422.77% and latest quarter sales of ₹32 Cr show significant business activity.
• Promoter holding of 95% indicates strong owner alignment.
• Trading at ₹23.63, far below the 52-week high of ₹280, reflects already depressed market expectations.
• Book value is positive at ₹8.05 per share, providing some tangible net worth despite losses.

Concerns

• Debt/Equity of 10.25 indicates extreme leverage and serious balance-sheet risk.
• ROE of -910.89% and ROCE of -6.84% show severe capital destruction.
• Latest quarter net profit of ₹-5 Cr and profit growth of -200.82% confirm ongoing losses.
• Piotroski F-Score of 3/9 points to poor overall financial health.

AI Analysis

At ₹23.63, this is not a business I can get excited about. CLC Industries is selling for a ₹14 crore market cap, but it earned nothing—P/E is meaningless, and the latest quarter shows a ₹5 crore loss on ₹32 crore sales. That tells me high revenue growth often comes with poor economics. A 422.77% sales growth sounds wonderful, but a -200.82% profit growth and -910.89% ROE are the sort of numbers that keep me awake. The company is carrying debt/equity of 10.25; with book value of only ₹8.05 per share, this is a highly leveraged, fragile balance sheet. ROCE of -6.84% means it is destroying capital, not compounding it. The F-score of 3/9 underlines the financial distress. Some may call the 95% promoter holding a positive; indeed, owner skin in the game is good, but it also means minority investors have little voice. The price has collapsed from ₹280 to ₹23.63. That is a falling knife. I prefer a wonderful company at a fair price, not a troubled textile company at any price. This is not a 'cheap' stock on book value; P/B is 2.94, so the market already asks for a premium to net assets despite losses. For a value investor, the margin of safety would come only if the company can reduce debt, improve ROCE, and turn the recent sales surge into real profits. Until I see a clear path to positive earnings and lower leverage, this belongs in the too-hard pile. I'd rather wait for a business that can demonstrate consistent earning power and a balance sheet I can trust. In CLC's case, the figures scream 'turnaround situation'—and turnarounds often turn the other way.

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