Veljan Denison (505232)

FairStock Score: 14/100 — RISKY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Veljan Denison as an auto-components cyclical, not a consumer franchise. At ₹1767.80 and ₹832 Cr market cap, Mr. Market asks 18.33 times earnings and 3.59 times book, with book value at ₹492.60. A P/E of 18.33 is not outrageous, but it is not a deep-value multiple either, especially when earnings are shrinking. For that price, I want a durable moat and high returns. The figures show only moderate quality: ROE 11.46% and ROCE 14.34%. A Graham-style bargain needs a margin of safety; paying nearly 3.6 times book and sitting at the 52-week high of ₹1767.80 offers little cushion. The 52-week range is ₹752.00–₹1767.80, so the market has already re-rated it sharply. The past five-year revenue CAGR of 14.87% is respectable, but recent numbers are going the wrong way: sales growth -9.64% and profit growth -24.06%. The latest quarter had sales of ₹33 Cr and net profit of ₹5 Cr, implying a roughly 15% net margin, but one quarter does not make a trend. The trend and Piotroski F-Score of 3/9 suggest fragility. FairStock Score 14/100 labelled RISKY confirms caution. Dividend yield 0.86% is modest. Debt/equity and promoter holding are unavailable, so I cannot judge leverage or management alignment. As Buffett, I prefer consistent earning power and a moat; as Graham, I prefer protection against error. This may be a cyclical turnaround candidate only if growth revives and returns improve. At current valuation, I would watch, not buy.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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