Vistar Amar (538565)

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

Key Financials

Strengths

• ROE of 35.21% indicates strong shareholder returns on book equity
• Explosive sales growth of 657.82% and profit growth of 1000% show momentum
• PEG ratio of 0.02 suggests cheap relative to recent growth rate
• Latest quarter sales of ₹66 Cr and net profit of ₹6 Cr demonstrate current profitability
• Piotroski F-Score of 6/9 indicates decent financial health

Concerns

• Negative ROCE of -4.38% contradicts the high ROE, implying earnings may come from non-operational sources
• P/B of 6.51 with book value of only ₹30.52 leaves minimal margin of safety
• No dividend yield and undisclosed promoter holding reduce transparency for retail investors
• Extraordinary growth rates are likely unsustainable and may reverse sharply

AI Analysis

Friends, when I see numbers like 657% sales growth and 1000% profit growth, my first instinct is to pull the brakes, not hit the accelerator. Vistar Amar looks like a rocket ship—market cap just ₹74 crore, price ₹198.60, P/E 18.79. But let's dig deeper. The ROE is 35.21%, which would impress any screen, but the ROCE is negative at -4.38%. That's a red flag: the business itself isn't generating returns on capital; the earnings may be coming from non-operating items or leverage. Book value is only ₹30.52, so you're paying 6.5 times book for a small food company. The latest quarter shows sales of ₹66 crore and net profit of ₹6 crore—healthy numbers, but is this sustainable? With a PEG of 0.02, the market is pricing in that hyper-growth continues forever. It won't. A Piotroski score of 6 out of 9 is okay, not stellar. There's no dividend, promoter holding is not disclosed, and the 52-week range of ₹91 to ₹238 shows real volatility. As Benjamin Graham said, price is what you pay, value is what you get. At ₹198, I don't see a margin of safety. This could be a wonderful business—but I'd need proof that returns on capital turn positive, debt stays low, and growth comes from operations, not one-offs. For now, I'll put this in my 'too hard' pile and wait for a cheaper price.

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