Bandaram Pharma (524602)

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

Key Financials

Strengths

• Revenue momentum is visible: sales grew 48.40%, and latest quarter sales were ₹15 Cr.
• Piotroski F-Score of 7/9 suggests some recent fundamental improvements, not deep distress.
• ROCE is positive at 7.67%, indicating some operating-level return despite negative ROE.
• Profit growth of 1000% from a low base could hint at operating leverage if it becomes sustainable.

Concerns

• Latest quarter net profit is ₹0 Cr, yet P/E is 135.95—valuation is built on negligible earnings.
• ROE is negative at -6.38%, meaning shareholder equity is not earning a positive return.
• P/B of 4.78 against book value of ₹6.48 provides no margin of safety.
• Promoter holding and debt/equity are undisclosed, and dividend yield is a token 0.34%.

AI Analysis

Let me be blunt: Bandaram Pharma is not the kind of business I can value with confidence. At ₹30.99, the market prices it at ₹38 Cr. The top line is growing—sales up 48.40% and the latest quarter brought in ₹15 Cr of revenue. But what did those sales deliver in profit? Essentially zero. The quarterly net profit is ₹0 Cr, and the trailing P/E stands at 135.95. That is not value; that is hope in a small shell. Graham would ask for a margin of safety, but here book value is only ₹6.48 while I am paying ₹30.99—nearly 4.8 times book. Worse, ROE is negative at -6.38%, meaning equity is shrinking, not compounding. ROCE of 7.67% is hardly a brilliant return on capital. I see a 1000% profit growth figure, but when earnings start from a base near zero, percentages are misleading. The PEG of 0.26 is mathematical nonsense on this earnings base. The Piotroski F-Score of 7/9 does show some recent balance sheet and operating improvements, so I am not dismissing the possibility of a turnaround. But a score of 7 also appears frequently in small volatile names. Promoter holding is unavailable, and debt/equity is not disclosed, so I cannot assess who is steering the ship or how much leverage there is. The dividend yield of 0.34% is negligible; I am not paid to wait. In the absence of consistent profits and a clear moat, this is a business-quality problem, not a temporary valuation problem. I would not buy today. I would wait for several quarters of genuine operating margins and a price that offers a real cushion against error.

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