Vadilal Enterp. (519152)

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

Key Financials

Strengths

• ROCE of 20.03% and ROE of 11.69% show the underlying business can generate decent returns when profits normalize.
• Piotroski F-Score of 7/9 suggests the company has not collapsed financially, despite the quarterly loss.
• Sales growth of 6.34% and profit growth of 11.96% on a trailing basis confirm modest operational momentum.
• Book value of ₹607.65 provides a tangible asset base to monitor, even though the price is far above it.

Concerns

• P/E of 149.08 and PEG of 16.29 are extreme; the valuation is far ahead of the growth actually delivered.
• Latest quarter net loss of ₹16 Cr on ₹145 Cr sales; with implied trailing profit of only ~₹2.12 Cr, the earnings cushion is razor-thin.
• P/B of 6.03 means the market price is far above book value, leaving no asset-based margin of safety.
• Dividend yield of 0.01% gives investors almost no compensation for the risk, and the 52-week range versus current price suggests either a data inconsistency or a severe decline.

AI Analysis

Looking at Vadilal first, I see a price that makes no room for error. At ₹3,663.20, the market cap is ₹316 Cr, yet the P/E is 149.08. That implies trailing earnings of roughly ₹2.12 Cr. In the latest quarter, the company lost ₹16 Cr on sales of ₹145 Cr. One more quarter like that and the full year could be in red. Graham taught me to buy with a margin of safety; paying 149 times earnings for a business that is currently losing money is the opposite. The positives are visible: ROCE of 20.03% and an ROE of 11.69% suggest the operations can generate decent returns when conditions are normal. The Piotroski F-score of 7/9 is a reasonable health check. But sales growth of 6.34% and profit growth of 11.96% do not justify a PEG of 16.29; the market is asking for decades of perfection. Book value of ₹607.65 means I am paying six times book for an uncertain recovery. The dividend yield is 0.01%, so there is no cash return while I wait. The 52-week range is especially odd: ₹9,450–₹11,327 while today's price is ₹3,663. Either the data are inconsistent or the stock has collapsed; either way, caution is mandatory. I would put this on my watchlist, not my buy list. Let me see a few quarters of positive profits and a sensible price before treating it as a serious value candidate.

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