retail

Brainbees Solutions (Firstcry)

FIRSTCRY · Nifty 50

218.33

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionretail sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score60/100 (ADEQUATE). 2 positive flags, 3 concerns.

Fundamental

60/100

ADEQUATE

Trust

95/100

Verification

Coverage

33/100

LIMITED

Quick Take

Brainbees Solutions (Firstcry) scores 60/100 on fundamentals (adequate). Brainbees Solutions (Firstcry): BROAD EXPANSION regime.

Fundamental Score: 60/100 · ADEQUATE · 2 signals detected

DuPont Analysis

ROE -2.9% broken into three drivers. Each shows how efficiently the company generates returns.

ROE-2.9%=
-1.6%Net Margin
×
0.9xTurnover
×
1.9xLeverage

ROE of -2.9% is modest efficiency-driven and stable. Net margin of -1.6% × asset turnover of 0.95x × leverage of 1.9x.

What This Means

Net margin of -1.6% means the company keeps ₹-1.6 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 0.95x means the company efficiently uses its assets to generate revenue. Leverage of 1.9x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

36.2%

Operating

-0.1%

Net

-1.6%

declining

Gross margin 36.2% → operating margin -0.1% → net margin -1.6%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.

Financial Health

Earnings Quality

WEAK

Cash flow only covers -2.6x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.

Debt Sustainability

STRETCHED

Interest covered only -0.1x — stretched. Rising rates could pressure profitability. Debt/EBITDA at 4.0x is high — monitor leverage.

Free Cash Flow

STRONG

FCF margin at 2.1% — barely positive. Limited cash after capex.

Peer Comparison

Brainbees Solutions (Firstcry) is compared against 3 peers in the retail sector.

Key Watchpoints

🟢

Breaks above ₹229 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹207 (-5%)

Further downside risk

🟢

Retail sector entering leadership

Sector rotation signal

Detected Patterns

✅ Cash Flow Inflection: FCF turned positive after negative periods — major transition
⚠️ Low Earnings Quality: Cash flow only -2.6x earnings — weak cash conversion

Risk Flags

🔴 2 Critical⚠️ 1 Warning2 Positive5 total flags
🔴Unusual items are 36% of net income
Earnings Quality

One-off items significantly inflating reported profit. Core earnings may be much lower.

🔴Cash covers only 12% of current liabilities
Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

⚠️Special charges present in income statement
Earnings Quality

Special charges of ₹50K Cr. May indicate restructuring, impairment, or one-time costs.

High promoter holding: 60%
Governance

Strong insider alignment. Promoters have significant skin in the game.

Price/Sales: 1.2x — reasonable revenue multiple
Valuation

Company not overvalued on revenue basis.

🔴 2 CRITICAL flags — significant concerns. Investigate before investing.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
Our margin analysis (declining) matches news reports of cost/margin pressure

50 articles scanned for fundamental themes

Facts

P/B Ratio
2.2HIGH
Market Cap
₹1051747.0L CrHIGH
From 52W High
50% of high
Sector Peers
3
Brainbees Solutions (Firstcry) Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight