Makers Labs. (506919)

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

Key Financials

Strengths

• Sales growth of 28.82% shows solid demand traction.
• Profit growth of 413% indicates a sharp turnaround from a low base.
• Piotroski F-Score of 7/9 suggests improving financial health.
• P/B of 1.35 against book value of ₹100.21 offers some asset support.
• Latest quarter is profitable with ₹2 Cr net profit on ₹36 Cr sales.

Concerns

• Trailing P/E of 70.75 means paying heavily for only about ₹1.2 Cr trailing net profit.
• ROE is negative at -3.70%, and ROCE of 4.25% is below an acceptable cost of capital.
• No dividend yield, so investors need full return from price appreciation.
• Missing debt/equity and promoter holding data reduces transparency for a small-cap pharma company.

AI Analysis

Let me forget the name and just look at the numbers. Makers Labs is a small ₹84 Cr pharmaceutical company. I am being asked to pay ₹135.30 a share, or 1.35 times book, for a business whose book value is ₹100.21. That does not look crazy on the asset side. But look at earnings: a trailing P/E of 70.75 means the company earned only about ₹1.2 Cr over the past year. For that, I need a very confident view of the future. The latest quarter is better: sales of ₹36 Cr and net profit of ₹2 Cr. If that run-rate were real and sustainable, the forward earnings would justify the price better. But one quarter does not make a franchise. Profit growth of 413% sounds spectacular because the base was tiny. Sales growth of 28.8% is genuinely good. Still, return on equity is negative at -3.70%, and ROCE is only 4.25%, which does not clear the hurdle my money could earn elsewhere. There is no dividend, so all my return must come from price appreciation. The Piotroski score of 7/9 tells me financial health appears to be improving. The PEG ratio of 0.32 looks cheap if growth continues, but a P/E of 70.75 is the opposite of margin of safety. This looks more like a turnaround than a proven compounder. I would need evidence that the new profit level is durable, that margins are expanding, and that management allocates capital honestly. In pharma, I also want clarity on debt, promoter holding, and the product pipeline. Without those, I would wait for a better price.

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