Orient Beverages (507690)

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

Key Financials

AI Analysis

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

Let me start with what the numbers tell me. At ₹358, Orient Beverages has a market cap of just ₹80 Cr, so this is a micro-cap. A P/E of 11.36 and a PEG of 0.05 look mouth-watering at first glance, especially with ROE close to 30%. But I learned long ago that a single ratio never tells the whole story. ROCE is only 11.73%, less than half of ROE. That gap usually means financial leverage is doing the heavy lifting, not operational excellence. I would demand to see the debt schedule, though the data says D/E is not available. That is itself a caution flag for me. The profit growth of 472% sounds extraordinary, but it likely comes from a very weak base; latest quarter net profit of ₹2 Cr on sales of ₹45 Cr is a thin 4.4% margin. This is not a wonderful business with pricing power. Sales growth of 16% is respectable, but I need to know whether it is volume, price, or one-time in nature. Book value is ₹101, so at ₹358 I'm paying 3.5 times book. A high ROE can justify a premium, but only if the moat is durable. I don't see a moat in these figures. There is no dividend, so shareholder return depends entirely on price appreciation; that adds uncertainty. Piotroski F-score 7/9 is encouraging, indicating recent financial strength, but it doesn't measure competitive durability. At the 52-week high, the stock has already run from ₹157 to ₹358. I cannot call this a margin of safety. It may be a fast grower, but at this price and with insufficient data, I prefer to sit on my hands.

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