Spencer's Retail (SPENCERS)

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

Key Financials

Strengths

• Promoter holding of 58.81% indicates significant insider stake and alignment with minority shareholders.
• Quarterly revenue of ₹503 crore provides a large operating base in Indian retail.
• Sales decline of only -2.73% suggests revenue is not collapsing, though profitability is deeply negative.
• 52-week range shows the stock has already corrected sharply from ₹64 high, reducing speculative froth.

Concerns

• Negative book value of ₹-87.27 per share means liabilities exceed assets, leaving no equity cushion.
• Latest quarter net loss of ₹58 crore on ₹503 crore sales implies severe cash burn and a roughly -11.5% net margin.
• Piotroski F-Score of 2/9 and ROCE of -9.72% indicate very poor financial health and capital destruction.
• Profit growth of -23.26% shows losses are widening, while sales are shrinking.

AI Analysis

Let me apply some simple tests. A company's book value is the anchor of solvency; Spencer's has negative book value of ₹-87.27 per share, meaning the equity cushion has been eroded and liabilities exceed assets. I cannot put a price-to-book multiple on a business with no net worth. The reported ROE of 60.24% is an arithmetic illusion created by a negative denominator, not a sign of shareholder wealth creation. ROCE of -9.72% tells the real story: the operating business is destroying capital. The latest quarter shows sales of ₹503 crore but a net loss of ₹58 crore, an approximate -11.5% net margin. Sales are also shrinking by 2.73% and profits have deteriorated by 23.26%. The Piotroski F-Score of 2/9 reinforces the picture of weak financial health. In Graham's language, there is no margin of safety. This is not a business trading at a discount to intrinsic value; it has negative intrinsic value from a balance-sheet perspective. The ₹297 crore market cap is a hope value, implying that shareholders believe management can engineer a turnaround. I would need evidence of narrowing losses, improving return on capital, and a credible plan to restore book value. I am not a buyer at ₹34.15 based on these numbers. I would rather miss the turnaround than risk permanent capital loss. Spencer's is a situation for distressed specialists with deep industry knowledge, not a classic Graham/Buffett investment.

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