Dishman Carbogen (DCAL)

FairStock Score: 2/100 — RISKY

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

Key Financials

Strengths

• Trading at a 31% discount to book value: P/B of 0.69 vs. book value of ₹253.34
• Moderate leverage with debt/equity of 0.40, limiting balance-sheet stress
• Promoter holding of 59.32% aligns management with minority shareholders
• Sales growth of 5.49% shows the business is still operating and not collapsing

Concerns

• Negative ROE of -1.02% and ROCE of only 2.42% indicate poor capital efficiency
• Latest quarter reported a net loss of ₹13 Cr, with profit growth down -381.96%
• Zero dividend yield gives no income for investors waiting for recovery
• Piotroski F-score of 4/9 and a high PEG of 3.79 suggest weak financial health and unattractive growth value

AI Analysis

The first thing I see is a price-to-book of 0.69. In Graham's world that catches my eye: I am paying ₹174.60 for assets booked at ₹253.34. But cheap assets must earn returns; here ROE is -1.02% and ROCE is only 2.42%. The latest quarter shows sales of ₹720 Cr yet a net loss of ₹13 Cr, and profit growth has collapsed by -381.96%. So the so-called discount to book may be deserved. The balance sheet is not reckless: debt/equity is 0.40, promoter holding is 59.32%, and sales growth is positive at 5.49%. Still, there is zero dividend, so shareholders must rely entirely on business improvement. A P/E of 20.81 is misleading near break-even, and the PEG of 3.79 suggests little growth is being bought. The Piotroski F-score of 4/9 adds to my caution. This is not a quality compounder. It is a possible asset play, but only if operating margins recover and book value stabilizes. If the business keeps earning close to zero on capital, a 31% discount to book can easily turn into a value trap. I would want evidence of a durable turnaround: a full quarter of solid operating profit, improving ROCE, and real cash generation. Until then, the market's caution is wise. This is a watchlist candidate, not a buy. In Indian pharma, working capital and regulatory costs can erode book value faster than expected. I would wait for proof before committing capital.

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