Orient Beverages (507690)

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

Key Financials

Strengths

• ROE of 29.90% with P/E of 11.36 points to attractive earnings yield if the recent profit level is sustainable.
• Sales growth of 16.46% and profit growth of 472.22% show strong near-term momentum.
• Piotroski F-Score of 7/9 suggests solid financial health on recent metrics.
• Latest quarter sales of ₹45 Cr and net profit of ₹2 Cr indicate the company is currently profitable and generating operating traction.
• Low PEG of 0.05 implies the market has not priced in the high growth rate.

Concerns

• ROCE of 11.73% is far below ROE of 29.90%, suggesting possible leverage; debt/equity data is N/A, so financial risk is unclear.
• No dividend; total return depends only on capital gains, increasing uncertainty for a small-cap.
• P/B of 3.53 means paying ₹358 for ₹101 book value; if growth stumbles, the margin of safety is thin.
• Profit growth of 472% is likely off a low base; latest net margin is only ~4.4%, so earnings quality needs scrutiny.

AI Analysis

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.

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