Vistar Amar (538565)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

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