Kerala Ayurveda (530163)

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

Key Financials

Strengths

• Revenue is still growing at 5.88%, with latest quarter sales of ₹33 Cr, so the top line is not collapsing.
• Book value remains positive at ₹31.69 per share, suggesting assets exceed liabilities on a per-share basis.
• The stock trades well below its 52-week high of ₹525.60, indicating the market has already repriced some risk.

Concerns

• Latest quarter shows a net loss of ₹5 Cr, and profit growth has fallen by 53.98%, indicating deteriorating earnings.
• ROE of -36.22% and ROCE of -9.01% show serious destruction of shareholder and invested capital.
• At a P/B of 9.79 with no positive P/E and no dividend, the valuation offers little margin of safety.
• Piotroski F-Score of 3/9 suggests weak overall financial health and high bankruptcy or distress risk.

AI Analysis

When I look at Kerala Ayurveda, I start with the numbers, and the numbers are not kind. A share price of ₹310.20 against book value of just ₹31.69 means investors are paying nearly 9.8 times stated net worth for a business that earned nothing. In fact, the P/E is meaningless because there are no earnings. Latest quarter sales were ₹33 Cr but the company lost ₹5 Cr. Over the year, profit growth is down nearly 54%, and ROE is a deeply negative -36.22%. ROCE at -9.01% confirms that capital employed is not earning its keep. This is the opposite of what Graham and I look for. We want a business with a durable moat and consistent returns; here the return on equity is destroying value. The only modest positive is top-line growth of 5.88%, so the business is not stagnating in rupee terms. But with a Piotroski F-Score of only 3/9, financial health is fragile. There is no dividend, and no P/E to justify a valuation that, even on annualised sales of about ₹132 Cr, values the company at around ₹373 Cr. That is a rich price for a loss-maker. The Ayurveda brand may have franchise value, but I do not buy potential at 9.8 times book. I wait for proof of earnings. I need to see quarterly losses narrow, margins recover, and return on capital turn positive. Until then, the margin of safety is absent. This is a possible turnaround, but only for speculators willing to tolerate severe volatility.

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