Gloster Ltd (GLOSTERLTD)

FairStock Score: 20/100 — RISKY

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

Key Financials

Strengths

• Trades at a 44% discount to book value: P/B 0.56 against BV ₹1,036.79.
• High promoter holding of 72.63% aligns ownership with public shareholders.
• Dividend yield of 3.56% offers some cash return while waiting.
• Sales growth of 115.31% shows strong top-line expansion.

Concerns

• Very weak profitability: ROE 3.41%, ROCE 1.55%, and latest quarter net profit is -₹1 Cr.
• Profit growth of -189.16% with a P/E of 80.86 indicates expensive valuation on collapsing earnings.
• Debt/Equity of 0.70 is risky given the low returns on capital.
• Piotroski F-Score of 4/9 and FairStock Score of 21/100 flag fundamental stress.

AI Analysis

I cannot call Gloster a wonderful business. In Graham's words, price is what you pay, value is what you get; here the price looks superficially cheap, but value is hostage to weak earning power. The shares trade at ₹581 against book value of ₹1,036.79, so a 44% discount to net assets. That is the classic asset-play setup. But assets that earn only 3.41% ROE and 1.55% ROCE are not earning their keep. Debt/equity of 0.70 adds financial risk when returns on capital are so thin. The P/E of 80.86 tells me the market is still paying a rich multiple for earnings that are collapsing—profit growth is -189.16%, and the latest quarter shows a net loss of ₹1 Cr despite ₹383 Cr of sales. The 115.31% sales growth is eye-catching, but a jute company growing revenue without profit is like a ship taking on water faster than it can bail. I do see some positives: 72.63% promoter holding means skin in the game, and a 3.56% dividend yield provides some income. But an unsustainable dividend is not a reason to buy. Piotroski score of 4/9 and FairStock's 21/100 risky score echo my caution. This is not a stalwart or a fast grower; it is an asset play trading at a large discount to book, with weak economics. I would demand a wide margin of safety and clear evidence of capital discipline before acting. In Buffett's words, it's far better to buy a wonderful business at a fair price than a fair business at a wonderful price—and today, Gloster is the latter.

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