Krebs Biochem (KREBSBIO)

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

Key Financials

Strengths

• Promoter holding is high at 72.74%, indicating owner interest remains committed.
• Profit growth of 59.56% suggests some improvement, albeit from a weak base.
• Piotroski F-Score of 5/9 points to select operational improvements relative to prior performance.
• Price is closer to the lower end of the 52-week range, reducing some speculative froth.

Concerns

• Negative book value of ₹-74.59 means liabilities exceed assets, leaving no equity cushion.
• Latest quarter lost ₹3 Cr on sales of just ₹7 Cr, showing severe operating distress.
• Sales are declining sharply at -36.62%, indicating a shrinking business.
• ROCE of -30.09% destroys capital, and no dividend means minority shareholders get nothing while waiting.

AI Analysis

A balance sheet with negative book value is a red flag I cannot ignore. Krebs Biochem has Book Value of ₹-74.59 per share, meaning liabilities exceed assets. The P/E of 0.00 and P/B 'N/A' are not glitches; they are the market telling you that earnings don't exist and equity is gone. In the latest quarter, sales were only ₹7 Cr and net profit was ₹-3 Cr. That is a heavy loss on a small revenue base. Full-year sales have declined 36.62%, so the franchise is shrinking, not compounding. ROCE of -30.09% means every rupee deployed in the business is being destroyed. The reported ROE of 17.57% is a mathematical oddity caused by dividing a loss by negative book value; it is not genuine shareholder return. At ₹59.46, the company commands a ₹123 Cr market cap for a business that is losing money and has negative equity—there is no earnings yield to justify that price. Promoter holding of 72.74% is comforting only in the sense that owners are still in the game. Profit growth of 59.56% might tempt some, but with a latest quarter still in loss, it is likely a small improvement from a very depressed base, not evidence of durable profitability. The Piotroski F-Score of 5 out of 9 shows some operational improvement, but not enough to offset the structural damage. No dividend, no earnings, negative equity—there is no margin of safety. Graham would call this a speculative turnaround. I cannot value a company that loses money and has a negative net worth. I would need to see a repaired balance sheet and several consistent profitable quarters before even considering it. For now, I pass.

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