Dr Agarwal's Eye (526783)

FairStock Score: 46/100 — MIXED

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

Key Financials

Strengths

• ROE of 37.95% shows exceptional capital efficiency.
• Sales growth of 22.20% and profit growth of 66.15% demonstrate strong momentum.
• Piotroski F-score of 7/9 indicates sound financial fundamentals.
• PEG ratio of 0.72 suggests the current growth rate is not fully priced if sustained.
• Specialised eye-care franchise with repeat clientele provides a business-quality moat.

Concerns

• P/E of 31.83 and P/B of 8.64 leave a thin margin of safety.
• Dividend yield of 0.13% offers negligible income support.
• Current price of ₹3,381.80 is below the stated 52-week low of ₹4,231, signaling either data inconsistency or a severe recent decline.
• ROE of 37.95% is far above ROCE of 17.53%, raising unanswered leverage questions since D/E is not disclosed.

AI Analysis

Let's look at Dr Agarwal's Eye as a business, not a ticker. It earns a ROE of 37.95%, which is excellent; a 22% sales advance and a 66% profit jump show real momentum. The F-score of 7 out of 9 confirms a healthy financial picture. A leading eye-care franchise in India has a tangible moat—customers trust their eyes to a specialised brand, and repeat procedures make this a decent compounding machine. But Graham taught me to weigh price against value. At ₹3,381.80, the stock trades at nearly 32 times earnings and 8.6 times book value. That is a demanding price for any business, let alone one in a competitive hospital field. The 0.13% dividend yield means the shareholder is entirely dependent on capital gains for reward. And while the PEG ratio of 0.72 looks appealing, that is only true if 66% profit growth truly repeats—I never underwrite the best year as the new normal. Notice the price sits below the stated 52-week low of ₹4,231. That could be a data error or a fall that deserves caution; either way, it's a yellow flag. Also, ROE is much higher than ROCE of 17.53%. That gap makes me want to know the true leverage picture, especially since debt/equity is not provided. I would not buy it as a value stock in the Graham sense. However, if the company can keep growing sales at 20% and translate that into high returns on equity, it is a fast grower. My discipline demands a margin of safety; at this valuation, I'd wait for a better price or clearer visibility on capital structure and repeat earnings.

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