Neochem Bio (NEOCHEM)

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

Key Financials

Strengths

• ROCE of 26.64% indicates efficient capital deployment if the reported earnings quality is confirmed.
• Promoter holding of 66.72% aligns promoter interests with minority shareholders.
• Small market cap of ₹136 crore gives a niche specialty chemicals business room to scale if operations recover.
• Current price of ₹77.30 is closer to the 52-week low of ₹63, reducing the entry valuation compared with the ₹121 high.

Concerns

• Latest quarter sales and net profit are ₹0 Cr, showing no visible current earnings power.
• Piotroski F-Score of 3/9 suggests weak financial health and possible deterioration.
• Book value, ROE, debt/equity, and P/B are not disclosed, making balance sheet safety impossible to assess.
• Zero dividend yield and zero growth make the P/E of 18.25 look expensive, not cheap.

AI Analysis

At ₹77.30, Neochem Bio carries a market cap of ₹136 crore and a P/E of 18.25. That is not a bargain for a business showing zero sales and profit growth and virtually no earnings in the latest quarter. Graham would demand a margin of safety; here the numbers offer little. ROCE is 26.64%, which is impressive at first glance, but I cannot underwrite a business when book value, return on equity, and debt/equity are undisclosed. The Piotroski F-Score of 3/9 is a clear warning flag — it tells me the latest reported financial health is poor. The zero dividend yield also means shareholders are not being paid to wait. The price is closer to the 52-week low of ₹63 than the high of ₹121, yet a low price alone is not a reason to buy; I need evidence that intrinsic value is protected. Promoter holding of 66.72% is in their favor — owner-operators with skin in the game — but that alignment must translate into profitable growth and transparent reporting. Specialty chemicals can be a fine business, but without sales, profit, or growth figures, this looks more like a story I cannot analyze, not a compounding machine. I would rather miss an uncertain opportunity than risk capital on insufficient data. At 18 times earnings, with zero growth and zero dividend, the math does not work for me. If the next quarters reveal real earnings, a cleaner balance sheet, and a return to growth, I will revisit. Until then, this stays in the 'too hard' pile.

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