Yaan Enterprises (538521)

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

Key Financials

Strengths

• Sales growth of 416% shows robust demand expansion in travel services
• Piotroski F-Score of 7/9 indicates sound trailing financial health
• Profit growth of 84.21% suggests improving operating leverage
• Return on equity of 15.09% is respectable for a micro-cap
• No dividend obligation frees up cash for potential reinvestment

Concerns

• Latest quarter shows zero net profit despite ₹9 crore sales, undermining the high P/E of 44.85
• P/B of 5.90 means paying a huge premium over book value of ₹13.43
• ROCE of 8.77% is well below ROE of 15.09%, suggesting returns may be leveraged; debt/equity is not disclosed
• No dividend and unknown promoter holding reduce governance visibility

AI Analysis

Let me start with what I like. A 416% revenue growth is eye-catching, and a Piotroski score of 7/9 suggests the company is not fabricating its recovery. But I have to stop and ask: what am I actually buying? At ₹79.17, Yaan Enterprises has a market cap of just ₹25 crore. For that I get a travel agency with a P/E of 44.85 and a P/B of 5.90 against book value of ₹13.43. The latest quarter tells the real story: sales of ₹9 crore, but net profit of exactly ₹0 crore. A business that generates no profit in its most recent quarter cannot justify an earnings multiple, and the trailing P/E is built on a small profit figure that may not repeat. Profit growth of 84% sounds good, but when the base is negligible, percentages mislead. ROCE of 8.77% combined with an ROE of 15.09% tells me leverage may be flattering equity returns, yet debt/equity is listed as N/A. No dividend, unknown promoter holding, and a 52-week range of ₹68 to ₹134 show a volatile micro-cap. Travel is cyclical, not a franchise with pricing power. There is no durable moat; customers can switch agents easily. The market may be pricing in a fast-growing future, but the latest quarter proves that profits are not following sales. I would not pay 45 times earnings for a company with zero current earnings and no margin of safety. This is a cyclical, and I would wait for evidence of sustained profitability at a lower price. Graham would demand more tangible evidence before risking capital.

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