Arigato Universe (530267)

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

Key Financials

Strengths

• Profit growth of 113.98% and PEG of 0.21 show earnings momentum off a low base, which can attract growth capital.
• ROE of 10.64% is positive, indicating the equity base of ₹14.87 per share is not loss-making.
• Piotroski F-Score of 5/9 is not a sign of financial distress.
• The company still generates ₹6 Cr of quarterly sales, so it has an active operating business.

Concerns

• Sales growth is 0.00%, while profit grew 113.98%; profit growth without revenue growth is normally not sustainable.
• ROCE is deeply negative at -29.62%, and the latest quarter's net profit is ₹0 Cr; the operating business is not generating shareholder value.
• At P/B 5.22 and ₹77.64 per share vs book value ₹14.87, valuation is rich for a micro-cap with 0.00% dividend yield.
• Missing or internally inconsistent data—promoter holding N/A, debt/equity N/A, and P/E/P/B/ROE mismatch—make analysis unreliable.

AI Analysis

Let me begin with a confession: at first glance, the 113.98% profit growth and 0.21 PEG ratio caught my eye. But Graham taught me not to pay for a story when the numbers contradict the story. Arigato Universe has a market cap of only ₹49 crore, trading at ₹77.64, exactly at the top of its 52-week range. That is a small, illiquid micro-cap, and the price-to-book of 5.22 against a book value of ₹14.87 is a heavy premium for a business with no dividend and no promoter holding disclosed. The P/E of 24.27 may look modest after the profit jump, but sales growth is 0.00%. When revenue is flat and profit rises 113.98%, I want to understand where the profit came from. The latest quarter's net profit of ₹0 crore and ROCE of -29.62% tell me the operating business is still not producing acceptable returns, even though ROE is positive at 10.64%. That combination suggests non-operating gains or a very low base, not a durable moat. The Piotroski score of 5/9 is average; no dividend; debt/equity not available; data insufficient. At ₹77.64, the market is paying as if the recovery has already happened. A true value investor needs margin of safety. I would not take the bait. I will wait for evidence of sales growth, positive operating ROCE, and consistent quarterly profit before calling Arigato Universe an investment. It may be a turnaround in the making, but in Indian small caps, hope is an expensive coin.

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