Regency Ceramics (REGENCERAM)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹36.31 |
| Market Cap | ₹96.01 Cr |
| P/E Ratio | 1,000 |
| ROCE | -43.47% |
| ROE | -0.16% |
| Dividend Yield | 0% |
| Profit Growth | -34.73% |
| Debt/Equity | — |
| Sales Growth | 374.1% |
| Promoter Holding | 60.43% |
| 52-Week Range | ₹30 — ₹54.99 |
| Sector | Consumer Durables |
| Book Value | ₹-31.78 |
Strengths
- Promoter holding is high at 60.43%, aligning management interest with minority shareholders.
- Sales growth of 190.91% shows strong top-line momentum, and the latest quarter sales of ₹12 crore indicate some order activity.
- A small market cap of ₹111 crore leaves room for meaningful operational improvement if the turnaround succeeds.
Concerns
- Negative book value of ₹-25.08 per share means shareholders' equity is eroded; debt-to-equity is not meaningful.
- Latest quarter net loss of ₹5 crore on sales of ₹12 crore shows severe unprofitability and cash burn.
- ROCE of -43.47% and Piotroski F-score of 3/9 reflect poor capital efficiency and weak financial health.
- P/E of 1000, profit decline of -34.73%, and zero dividend leave no valuation anchor or margin of safety.
AI Analysis
At ₹44.66 with a market cap of ₹111 crore, Regency Ceramics is the kind of stock that demands extreme caution. Sales growth of 190.91% is dramatic, and the latest quarter sales of ₹12 crore suggest something is happening in the market. But I have learned to focus on earnings, not revenue excitement. Profit growth is minus 34.73%, and the company still lost ₹5 crore in the latest quarter on just ₹12 crore of sales. That is a deeply unprofitable business. Graham would ask about book value: it is minus ₹25.08 per share. There is no positive equity to back your investment. Debt-to-equity is not even calculable because equity is negative. The P/E of 1000, with no dividend, tells me I am paying a huge multiple for negligible current earnings. ROCE of -43.47% confirms management is destroying capital, not creating it. The Piotroski F-score of 3 out of 9 supports the weak financial picture. On the positive side, promoter holding of 60.43% is high, and top-line growth signals possible revival. Ceramics, however, is a competitive industry tied to real estate cycles; I see no durable moat or pricing power. A 190% sales jump from a small base can be noise or a genuine turnaround, but without positive margins and a repaired balance sheet, I cannot attach a Graham-style valuation. Speculation may offer thrills; investing requires margin of safety. Today, Regency Ceramics provides none. If management can turn operating profits and rebuild equity, I will study it again. For now, I will pass.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer