CMI (CMICABLES)

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

Key Financials

Strengths

• Latest quarter still generated ₹13 Cr of sales, showing some revenue base.
• Piotroski F-Score of 5/9 suggests the accounting signals are not uniformly distressed.
• The stock has already fallen from its 52-week high of ₹6.02, so the market expects bad news.
• Reported profit growth of 65.79%, while from a weak base, hints at possible improvement in the loss trend.

Concerns

• Book value is -₹91.37 per share; shareholder equity is negative.
• Latest quarter net loss of ₹3 Cr on sales of ₹13 Cr is severe cash burn against a ₹7 Cr market cap.
• Sales fell 53.71% and ROCE is -4.24%, so the core business is shrinking and unprofitable.
• Promoter holding of only 0.50% means no skin in the game.
• Free cash flow of ₹1.59 lakh Cr is implausible given a ₹7 Cr market cap, undermining data reliability.

AI Analysis

I start with a simple rule: never lose money. CMI fails that test almost everywhere I look. The balance sheet is not a balance sheet; book value is minus ₹91.37 per share, meaning the equity has been wiped out. Debt-to-equity is not available, which is itself a red flag when book value is negative. The latest quarter tells the real story: sales of ₹13 crore and a net loss of ₹3 crore. With a market cap of just ₹7 crore, the company is losing meaningful money relative to its entire value. Sales have fallen 53.71%, so the business is shrinking, not stabilizing. The positive profit growth figure of 65.79% is an illusion from a low or negative base. ROCE is -4.24%; operations do not earn a return on capital. The reported ROE of 15.41% is meaningless because it is calculated on negative equity. I cannot use price-to-book when book value is negative. The free cash flow stated as ₹1.59 lakh crore is so inconsistent with a ₹7 crore market cap that I suspect bad data; I must verify before trusting anything else. Promoter holding of 0.50% tells me the people closest to the company have almost no money at risk. That is not alignment; it is absence. The 52-week range of ₹2.69 to ₹6.02 shows the stock has fallen, but low price is not cheap price. I see no moat, no pricing power, no balance-sheet cushion, and no owner-operator. This is not a business I would buy for value; it is a speculative situation requiring proof of survival first. I would need positive book value, positive free cash flow, real sales stabilization, and serious promoter ownership before spending another minute on CMI.

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