Why should we invest in a firm which is not making the profit? Of course, there can be turnaround companies, many companies turn profitable after being in a loss for years. The probability of any company to turn profitable which is in the loss for years is very less. Also, you have to do a lot of research to make sure that the company can actually turn profitable which is not possible for a common investor. On the safer side, it’s better to reject such companies. Also, avoid companies whose profits are going down year on year.