Vivo Bio Tech (511509)

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

Key Financials

Strengths

• Low entry valuation: P/E of 13.27 and P/B of 1.34 vs book value ₹28.16 afford a margin of safety.
• Strong momentum: sales growth of 10.65% and profit growth of 52.44% with a PEG of 0.42 suggests the market may be underpricing growth.
• Piotroski F-Score of 7/9 indicates solid financial health across profitability, leverage, and efficiency metrics.
• Small but real operating profitability: ROE 7.82%, ROCE 9.04%, and latest quarter net margin of about 7% are positive.

Concerns

• Low returns on capital: ROE of 7.82% and ROCE of 9.04% are far below the quality thresholds Buffett/Graham demand.
• Micro-cap fragility: ₹56 Cr market cap and ₹1 Cr quarterly net profit leave little room for error or liquidity.
• Missing governance and balance-sheet data: promoter holding and debt/equity are not disclosed, limiting trust and risk assessment.
• No dividend: 0% yield means shareholders rely entirely on management's reinvestment at below-average returns.

AI Analysis

I have always said it is far better to buy a wonderful company at a fair price than a fair company at a wonderful price. Vivo Bio Tech tests that discipline. At ₹37.69, the market cap is only ₹56 crore, the P/E is 13.27, and the P/B is 1.34 against a book value of ₹28.16. That sounds reasonable, but I must ask what returns the business generates. ROE of 7.82% and ROCE of 9.04% are simply not attractive; a durable compounder normally earns far more on capital. Still, the reported momentum is real: sales grew 10.65%, profits jumped 52.44%, and the PEG is 0.42. If that profit growth can be sustained, the valuation is not expensive. The Piotroski F-Score of 7/9 also gives me some comfort that the fundamentals are not deteriorating. But I am uncomfortable with what is missing: debt-to-equity is not available, promoter holding is not disclosed, and the latest quarter's ₹14 crore in sales produced only ₹1 crore of net profit, a thin margin. There is no dividend, so all my returns depend on reinvestment in a business earning less than 10% on capital. This looks like a small fast grower, not a high-quality moat. A ₹56 crore microcap can swing wildly; the 52-week range of ₹20.35 to ₹43.35 shows that. I would keep any position small, insist on verifying the balance sheet, and wait for evidence that the 52% profit growth is not a one-off.

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