Mcleod Russel (MCLEODRUSS)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹46.27 |
| Market Cap | ₹483.32 Cr |
| P/E Ratio | 0 |
| ROCE | -1.85% |
| ROE | -4,016% |
| Dividend Yield | 0% |
| Profit Growth | 58.31% |
| Debt/Equity | 30.1 |
| Sales Growth | -21.2% |
| Promoter Holding | 6.25% |
| 52-Week Range | ₹28.5 — ₹78.41 |
| Sector | Agricultural Food & other Products |
| Book Value | ₹-4.83 |
Strengths
- Sales growth of 20.21% shows strong top-line momentum.
- Profit growth of 58.31% indicates losses are narrowing year-on-year.
- Piotroski F-Score of 6/9 suggests improving operational efficiency.
- 52-week range of ₹28.50 to ₹78.41 shows the stock has recovered significantly from its low.
- Latest quarterly revenue of ₹445 crore reflects a substantial operating base.
Concerns
- Debt-to-equity of 30.10 is dangerously high and threatens solvency.
- ROE of -100.37% means the company is destroying shareholder equity.
- Promoter holding of just 6.25% signals very low skin in the game.
- Zero dividend and negative net profit provide no return while waiting.
AI Analysis
As a value investor, my first question is always: what kind of business am I buying? Mcleod Russel is a tea producer, a commodity business with little pricing power. The numbers tell a grim story. The company has a market cap of ₹436 crore, but it carries a debt-to-equity ratio of 30.10. That means borrowings are thirty times the equity base. That is not leverage; that is a life-threatening financial structure. The latest quarter shows sales of ₹445 crore but a net loss of ₹36 crore. Return on equity is -100.37%, essentially wiping out shareholder equity. Book value is ₹20.18 per share, yet the stock trades at ₹55.12, or 2.73 times book. For a company losing money, that premium makes no sense. Sales growth of 20.21% is impressive for a tea firm, and profit growth of 58.31% is positive, but it comes from a deeply negative base. The Piotroski F-Score of 6/9 hints at some operational repairs. Still, promoter holding is only 6.25%, so my interests are not aligned with insiders. There is no dividend. This is not a Graham-style bargain; it is a financially distressed commodity play. I would need a huge margin of safety after accounting for all debt. I do not see it at this price. I will watch from the sidelines.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer