Goa Carbon (GOACARBON)

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

Key Financials

Strengths

• Sales growth of 49.53% shows recent revenue momentum.
• Promoter holding is high at 59.72%, aligning interests with minority shareholders.
• Book value of ₹257.06 provides some tangible asset support, with P/B at 1.42.
• Latest quarterly sales of ₹194 Cr indicate continued operating scale despite losses.

Concerns

• Net profit is deeply negative, with profit growth down 180.22% and latest quarter loss of ₹23 Cr.
• Return on equity is -25.51% and ROCE is -2.28%, indicating value destruction.
• Debt-to-equity of 2.08 is high for a loss-making company, raising financial risk.
• Piotroski F-Score of 3/9 and zero dividend signal weak financial health.

AI Analysis

When I look at Goa Carbon, I see a business that is currently earning nothing for its owners. The P/E of 0.00 is not a sign of cheapness; it is a sign that profits have vanished. In fact, the latest quarter shows sales of ₹194 Cr but a net loss of ₹23 Cr. Over the longer trailing period, return on equity is deeply negative at -25.51%, and return on capital employed is -2.28%. This is not a franchise with pricing power; it is a commodity-like industrial mineral business caught in a difficult phase. The balance sheet worries me. Debt-to-equity of 2.08 is high for a company losing money, and with zero dividend, shareholders are not being paid to wait. The Piotroski F-Score of 3 out of 9 reinforces my caution, as it points to weak financial health and deteriorating fundamentals. On the positive side, sales growth of 49.53% shows some revenue momentum, but a 180.22% decline in profit tells you that growth is not translating into value. At ₹364.85, the stock trades at 1.42 times book value of ₹257.06. That is not a margin of safety Graham would admire, especially when return on equity is deeply negative. Promoter holding of 59.72% is decent, but high ownership does not replace profitability. This looks like a cyclical business at a low point, not a durable compounder. I would need strong evidence of margin recovery and debt reduction before considering this. For now, the figures tell me to stay disciplined and wait for a better risk-reward or clearer evidence of a turnaround.

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