Brainbees Solut. (FIRSTCRY)
TurnaroundFairStock Score: 26/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹206.09 |
| Market Cap | ₹10,002.77 Cr |
| P/E Ratio | 0 |
| ROCE | -0.4% |
| ROE | -3.94% |
| Dividend Yield | 0% |
| Profit Growth | -468.42% |
| Debt/Equity | 0.3 |
| Sales Growth | 15.6% |
| Free Cash Flow | ₹-1,521.89 Cr |
| Promoter Holding | 0% |
| 52-Week Range | ₹161.6 — ₹406 |
| Sector | Retailing |
| Book Value | ₹100.33 |
Strengths
- Revenue growing 12.43% in a difficult e-commerce environment.
- Latest quarter sales of ₹2,424 Cr indicate meaningful operating scale.
- Debt/equity at 0.33, so the balance sheet is not over-leveraged.
- Book value of ₹90.82 provides some asset support, though returns on it are negative.
Concerns
- Negative ROE and ROCE, with latest quarter net loss of ₹39 Cr and profit growth of -468.42%.
- Free cash flow deeply negative at -₹1,522 Cr and EV/EBITDA at -3.58.
- Piotroski F-Score of 3/9 and Altman Z-Score of 2.36 indicate financial fragility.
- Promoter holding at 0.00% is a serious governance and skin-in-the-game concern.
AI Analysis
Reading Brainbees Solutions, my first reaction is caution. A business must earn a return on capital; here ROE is -3.94% and ROCE is -0.40%, so capital is being consumed, not created. The trailing P/E is meaningless because there is no positive profit; instead profit growth widened by -468.42%. In the latest quarter, sales of ₹2,424 Cr still produced a net loss of ₹39 Cr. That is no margin of safety. Free cash flow is deeply negative at -₹1,522 Cr, while EV/EBITDA is -3.58. This means the market is paying an enterprise value for a business that cannot generate cash. Piotroski F-Score of 3/9 reinforces fundamental distress; Altman Z-Score of 2.36 sits in the grey zone. With promoter holding at 0.00%, I do not see the operators' capital at risk beside mine. As Graham said, there is no such thing as a good investment in a bad business. The only positives are sales growth of 12.43%, a book value of ₹90.82, and debt/equity of 0.33 — but paying ₹247.95 for a book that earns negative returns is not value; it is hope. Mr Market's 52-week range of ₹202.70 to ₹438.70 shows how quickly enthusiasm fades. I need proof of a durable moat and a realistic path to positive free cash flow before I can assign a multiple. This is not a compounder yet; it is a turnaround candidate at best, and the burden of proof is on management.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer