Unjha Formul. (531762)

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

Key Financials

Strengths

• Return on equity of 31.39% and ROCE of 18.06% indicate productive capital use.
• Sales growth of 17.29% shows healthy demand traction.
• Piotroski F-Score of 7/9 suggests decent financial health.
• P/E of 9.35 and PEG of 0.71 make the valuation appear reasonable for a growing business.

Concerns

• Latest quarter net profit is ₹0 Cr despite sales of ₹4 Cr, showing earnings instability.
• Profit growth of 9.09% trails sales growth of 17.29%, indicating margin pressure.
• No dividend yield and no promoter holding disclosure reduce transparency and return support.
• Debt/Equity is N/A, leaving the true leverage position unknown.

AI Analysis

As a value investor, I first ask what I actually own. Unjha Formul. is a ₹10 Cr microcap pharmaceutical company. At ₹21.60, I am paying 9.35 times earnings and 2.73 times book value. The 31.39% return on equity is eye-catching, but Graham would remind me that a high ROE without a durable moat is often a small company's temporary advantage. A book value of ₹7.92 gives me some asset floor, but at 2.73 times book, the price is not a distress bargain. Debt/Equity is not disclosed, so I cannot fully assess the balance-sheet risk. That absence of data bothers me more than a high debt number would. Sales grew 17.29%, and profit grew 9.09%. The PEG ratio of 0.71 suggests the stock is cheap relative to growth, but I notice the gap: profit is not keeping pace with sales. The latest quarter makes this concrete: sales of ₹4 Cr and net profit of ₹0 Cr. A zero-profit quarter in a business this small is a warning, not a rounding error. Piotroski F-Score of 7/9 is encouraging, but it does not cure a quarter with no earnings. There is no dividend, so my return depends entirely on capital gains. Promoter holding is also not disclosed, so I cannot judge whether I am aligned with insiders. This looks like a small, growing business selling at a reasonable multiple. But the margin compression and lack of disclosure prevent me from calling it a high-quality compounder. I would not rush to buy; I would wait for proof that the latest quarter was an exception and that profit growth catches up with sales. A cheap stock can always become cheaper when numbers are murky. In investing, you get paid for certainty, and Unjha Formul. does not give me enough certainty yet.

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