Arigato Universe (530267)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

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