Kimia Bioscien. (530313)

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

Key Financials

Strengths

• P/E of 17.61 and PEG of 0.92 are reasonable if 19.04% profit growth can be sustained.
• Latest quarter net margin is healthy: ₹5 Cr profit on ₹30 Cr sales, around 16.7%.
• Reported ROCE of 41.80% and ROE of 267.73% suggest strong historical capital efficiency, though the equity base is tiny.
• Piotroski F-Score of 6/9 is okay and points to at least moderate financial health.

Concerns

• Reported ratios are internally inconsistent; P/E and book value imply an ROE far above 360%, not 267.73%, raising data/reporting quality doubts.
• Sales growth is 0.00%, so profit growth lacks top-line support and may not be repeatable.
• P/B of 63.48 with book value ₹0.79 means no balance-sheet margin of safety.
• No dividend, no promoter holding data, and no debt-equity information limit certainty.

AI Analysis

At ₹50.15, Kimia Bioscien is priced as a market darling: ₹237 Cr market cap, P/E of 17.61, ROE of 267.73%, ROCE of 41.80%, and a 19.04% rise in profits. But I have learned to read the ledger before the ad copy. The P/B of 63.48 against a book value of ₹0.79 tells me the balance sheet is almost irrelevant to this price—there is no asset cushion. Worse, the numbers do not quite reconcile. A P/E of 17.61 on ₹237 Cr implies trailing earnings of roughly ₹13.5 Cr, but equity at ₹0.79 per share is only about ₹3.7 Cr; that would mean ROE above 360%, not 267.73%. When reported data doesn't tie out, I become cautious. Profit growth of 19.04% is welcome, and the PEG of 0.92 suggests the market isn't paying up for that growth. But sales growth is 0.00%, so the profit growth is coming from margins, costs, or tax items—not from a compounding top line. The latest quarter's net profit of ₹5 Cr on ₹30 Cr sales is a healthy 16.7% margin, but I need to know if that is sustainable. There is zero dividend yield, so the minority holder is entirely at the mercy of capital gains. The stock is at the top of its 52-week range, ₹50.15; Mr. Market is already bullish. With no promoter holding data, no debt-equity ratio, and an insufficient-data flag, I lack the certainty Graham demanded. This may be a fine small pharma grower, but for me it is a pass until the story is cleaner.

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