Elantas Beck (500123)

FairStock Score: 27/100 — RISKY

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

Key Financials

Strengths

• ROE of 17.04% and ROCE of 21.23% indicate efficient capital allocation and a competitive moat
• Profit growth of 32.38% with latest quarterly net profit of ₹39 Cr shows strong earnings momentum
• Piotroski F-score of 7/9 suggests sound financial health and low bankruptcy risk
• Sales growth of 9.26% provides a base for future expansion

Concerns

• P/E of 48.14 and P/B of 9.15 leave no margin of safety; PEG of 2.31 shows valuation ahead of growth
• Profit growth is driven by margin expansion rather than top-line growth, which may not be sustainable
• Dividend yield of 0.08% is negligible, so returns depend entirely on price appreciation
• FairStock Score of 30/100 flags risk; lack of promoter holding and debt data reduces transparency

AI Analysis

As a value investor, I first ask what kind of business I am buying. Elantas Beck operates in specialty chemicals, a field where strong chemistry and customer relationships can create genuine moats. The numbers support that view: return on equity is 17.04%, and return on capital employed is 21.23%, both well above what a commodity business would earn. The latest quarter delivered ₹215 Cr in sales and ₹39 Cr in net profit, and profit growth of 32.38% towers over sales growth of 9.26%. That is margin expansion, likely from better product mix or pricing power. However, I cannot ignore the price tag. At ₹10,891.70, the stock trades at 48.14 times earnings and 9.15 times book value. Even with a strong franchise, I must ask how much success is already priced in. The PEG ratio of 2.31 suggests the growth rate does not justify the multiple. Sales growth in single digits worries me; margin expansion can be fleeting, and once margins plateau, profit growth will collapse toward revenue growth. The Piotroski score of 7 out of 9 indicates solid financial health today, but debt and promoter holding are marked not available—gaps I dislike. Dividend yield of 0.08% means I get no income. The 52-week range of ₹7,111 to ₹11,499 shows the stock has already doubled; much good news is out. In Graham's language, this is not a margin of safety. It is a good company at a demanding price. As Buffett, I would say, 'It's a wonderful business, but not at any price.' I would keep it on my watchlist and wait for a better entry point.

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