Beryl Drugs (524606)

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

Key Financials

Strengths

• ROCE of 10.15% shows the operating business earns a double-digit return on capital employed despite weak net margins.
• Book value of ₹18.52 per share provides some asset backing, with price at ₹29.11 and P/B at 1.57.
• Latest quarter sales of ₹4 Cr with near-zero net loss suggests no acute cash-burn crisis.
• Small market cap of ₹15 Cr leaves room for operational improvements if management executes well.

Concerns

• Sales growth is deeply negative at -28.70%, and profit growth collapsed by -440%.
• P/E of 1,000 with ROE of 0.15% reflects negligible earnings relative to price and equity.
• Piotroski F-Score of 3/9 indicates weak financial health.
• No dividend, no promoter holding disclosure, and debt/equity not available reduce transparency and income support.

AI Analysis

At first glance, this is exactly the kind of small, unproven pharma stock I avoid. Beryl Drugs has a market cap of just ₹15 crore and a P/E of 1,000. That is not a valuation; it is the absence of meaningful earnings. Sales fell 28.7%, and profit growth swung by minus 440%. For me, the first test is whether I can see a durable moat and predictable earnings. A ₹4 crore quarter in the pharmaceutical market tells me there is no scale, no pricing power, and no competitive advantage. ROE is 0.15%; I can get more from a bank fixed deposit with far less risk. Book value is ₹18.52, yet the market price is ₹29.11, so I am paying 1.57 times book for deteriorating operations. The Piotroski F-Score of 3 out of 9 reinforces a weak financial picture. There is no dividend, and promoter holding is not even disclosed. That makes me uncomfortable. Charlie and I do not need heroic forecasts, but we do need reasonable certainty about the future. This stock offers neither growth nor a bargain. The only positives I can see are ROCE of 10.15%, which is not terrible, and the latest quarter is near breakeven rather than burning cash. But near-zero profit on ₹4 crore of sales is not a turnaround; it is an unstable perch. I would want evidence of stabilising sales, a clear path to real profits, and a much larger margin of safety before considering an investment. Until then, this is a pass.

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