Aayush Wellness (539528)

FairStock Score: 50/100 — MIXED

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

Key Financials

Strengths

• Sales growth of 73.66% shows strong demand traction for the packaged foods business.
• ROE of 73.89% and ROCE of 51.02% indicate efficient use of a small capital base.
• The latest quarter is profitable, with ₹45 Cr sales yielding ₹1 Cr net profit, so the business is not burning cash.

Concerns

• P/B of 211.52 against a book value of just ₹1.25 leaves no asset-based margin of safety.
• Profit growth is -5.50% despite 73.66% sales growth, showing weak conversion of revenue into earnings.
• Piotroski F-Score of 4/9 signals poor or mixed financial quality.
• Dividend yield of 0.08% is negligible, while promoter holding and debt/equity data are not available, limiting transparency.

AI Analysis

At ₹264.40, this is not the kind of business Benjamin Graham would ask me to analyse; it is the kind he would tell me to put down. I am paying 33.8 times earnings and 211 times book value, while book value is just ₹1.25 per share. When the price-to-book ratio is 211, the asset cushion is imaginary. The high ROE of 73.89% and ROCE of 51.02% look spectacular, but they come from a tiny equity base, not necessarily from a durable competitive advantage. I need a moat; I do not see one in packaged foods from these numbers. Revenue growth of 73.66% is impressive, but profit growth of -5.50% destroys the growth story. A business that sells more yet earns less is not compounding. The latest quarter shows ₹45 Cr of sales converting into only ₹1 Cr of net profit—a margin too thin for safety. At the current market capitalisation of ₹1,287 Cr, I need profits, not just revenue, to justify the multiple. The reported P/E of 33.80 is already demanding; the Piotroski F-Score of 4/9 tells me the financial health is mixed at best. Dividend yield of 0.08% means I am not getting paid to wait. The PEG ratio of 0.46 is a trap if it uses sales growth; earnings are declining, not growing. I also cannot evaluate promoter commitment or debt because those fields are not available. That lack of transparency fails my circle of competence. This may be a fast-growing revenue story, but at this price it offers no margin of safety. I would rather miss the excitement than risk permanent capital on hope.

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