Zodiac Vent. (503641)

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

Key Financials

Strengths

• P/E of 10.86 with 45.45% profit growth gives a low PEG of 0.18
• Sales growth of 73.24% shows strong top-line momentum
• Piotroski F-Score of 7/9 suggests improving fundamentals
• Dividend yield of 6.45% offers some income support
• Low absolute market cap of ₹58 Cr leaves room for growth if execution delivers

Concerns

• ROE of 7.54% and ROCE of 8.88% are weak for a stock trading at 8.66 times book value
• Latest quarter shows sales of only ₹1 Cr and net profit of ₹0 Cr, indicating negligible absolute scale
• 52-week range of ₹1.18 to ₹14.89 shows a massive speculative re-rating that raises timing risk
• Promoter holding and debt/equity are not disclosed, leaving serious transparency gaps

AI Analysis

When I look at Zodiac Vent., I first ask what I am really buying. The headline P/E of 10.86 and a PEG of 0.18 appear attractive if the 73.24% sales growth and 45.45% profit growth are durable. But Benjamin Graham warned that numbers without quality are a trap. The stock has moved from ₹1.18 to ₹14.89—a twelve-fold rise—and the latest quarter shows sales of just ₹1 Cr and net profit of ₹0 Cr. That is not a compounder; that is a very small consulting-services business. Book value is only ₹1.72, yet I am paying ₹14.89, or 8.66 times book. In exchange, the business earns only 7.54% ROE and 8.88% ROCE. That is poor capital productivity for such a high premium. A 6.45% dividend yield sounds good, but with minuscule earnings, dividends may not be sustainable at this level. The Piotroski F-Score of 7 is a positive signal, and the growth rates are impressive, but growth from a tiny base can be misleading. There is no durable moat in consulting services; clients come and go. I look for consistency: this is one quarter, one snapshot. The debt/equity is unavailable, promoter holding unavailable—too many gaps for a prudent investor. Graham would want a margin of safety; at ₹14.89, after a massive re-rating, I do not see one. This is a fast grower on paper, but not a proven business. I would watch it, not own it. If quarterly profits become real and consistent, if ROE moves above 15%, and if the balance sheet stays clean, then the story becomes interesting. Until then, price is betting on momentum, and I do not bet.

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