BDH Industries (524828)

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

Key Financials

Strengths

• Sales growth of 81.11% shows strong recent business momentum.
• Piotroski F-Score of 7/9 indicates generally healthy financials.
• ROE of 16.40% and ROCE of 17.82% reflect decent capital efficiency.
• PEG of 0.42 suggests the current P/E may undervalue future growth if sustained.
• Price is well off the 52-week high, offering a better entry than earlier buyers had.

Concerns

• Profit growth of 24.20% is far below sales growth of 81.11%, implying margin pressure.
• P/B of 2.86 means paying a significant premium over book value.
• Promoter holding and debt/equity data are unavailable, limiting transparency.
• Dividend yield of only 1.12% offers little downside support.

AI Analysis

Let me look at BDH Industries as I would any small pharmaceutical business. The numbers tell a mixed but intriguing story. A market cap of ₹195 crore makes this a tiny fish in a competitive ocean. At ₹336.80, the stock sits well off its 52-week high of ₹523.75—a reminder that Mr. Market's enthusiasm can cool quickly. The trailing P/E of 22.22 is not a bargain, but with a reported PEG of 0.42 and sales growth of 81.11%, the market may still be underpricing the company if that growth is durable. I am, however, cautious: profit growth of only 24.20% trails sales growth substantially, which suggests margins are being squeezed or costs are rising. Graham would ask: what is the margin of safety? Book value of ₹117.66 against price of ₹336.80 gives a P/B of 2.86, so we are paying a premium for tangible assets. The return on equity of 16.40% and ROCE of 17.82% are respectable, showing management can deploy capital reasonably well. The Piotroski F-Score of 7/9 gives me some comfort that the balance sheet isn't deteriorating. Yet I cannot call this a wonderful business based on these figures alone; pharmaceutical moats require research, patents, or distribution strength, none of which are visible in this data. The latest quarter's ₹29 crore sales and ₹3 crore net profit, annualized roughly, support a small but functioning operation. The lack of promoter holding data and no debt-equity figure bother me, because I dislike investing in the dark. At a price substantially below its high, with a PEG below one, it may merit further study, but I would want to see profit growth catch up with sales, better disclosure, and confirmation that the growth is not a one-off before committing capital.

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