Virat Industries (530521)

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

Key Financials

Strengths

• Return on equity of 15.53% is respectable on the small book value of ₹18.32
• Piotroski F-Score of 6/9 indicates decent short-term financial health signals
• Latest quarter is profitable with ₹6 Cr sales and ₹1 Cr net profit, suggesting some earnings traction
• PEG of 0.16 is optically cheap if the high profit growth can be sustained, though the base effect is suspect

Concerns

• P/E of 144.88 and P/B of 8.52 are extreme for a company with falling sales of -7.29%
• ROCE of only 4.79% signals weak returns on capital employed
• No dividend, zero promoter holding disclosure, and debt/equity N/A leave major knowledge gaps
• Current price of ₹156.15 is below the stated 52-week low of ₹293.15, raising data or liquidity concerns

AI Analysis

Let me begin with the numbers that matter. At ₹156.15, Virat Industries has a market cap of ₹77 Cr, but the 52-week range of ₹293.15-₹883.20 puts the current price below the stated low. That is a red flag: either the data is unreliable or the market has repriced the stock violently. A Graham disciple starts by avoiding nonsense, and this smells like one of those situations. Trailing P/E is 144.88. You are paying 145 years' worth of current earnings for a business whose sales fell 7.29%. Book value is only ₹18.32, so the price-to-book is 8.52. That is not a margin of safety; that is hope. The 883.33% profit growth is flattering because the base was tiny; the latest quarter shows just ₹6 Cr sales and ₹1 Cr profit. Annualise that and the earnings power is still small relative to a ₹77 Cr market cap. ROCE of 4.79% tells me this is not a wonderful capital allocator, and with zero dividend, the shareholder is dependent entirely on price appreciation. ROE of 15.53% looks respectable, but on a tiny equity base and with falling sales, I cannot call it a durable competitive advantage. Piotroski F-Score of 6/9 is a mildly positive balance-sheet signal, but it is not a moat. I have no promoter holding data, no debt-to-equity data, and no cash flow figures. That is insufficient information for rational valuation. If sales stabilise, margins expand and ROCE moves into double digits, it could be a genuine turnaround. Until then, at 145 times earnings, the risk-reward is poor. I would rather miss the move than pay such a price for an unproven recovery.

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