Viram Suvarn (540252)

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

Key Financials

Strengths

• Strong reported profitability: ROE 30.28%, ROCE 19%, and Piotroski F-Score 7/9
• Exceptional growth: sales up 102.70%, profit up 341.67%, with a PEG of 0.06
• Reasonable headline valuation: P/E 14.04 and price near the lower half of the 52-week range ₹6.82–₹12.99
• Tiny market cap of ₹75 Cr leaves room for a long growth runway if the business is genuinely compounding

Concerns

• Latest quarter net margin is ~37.5% (₹3 Cr profit on ₹8 Cr sales), abnormal for gems and jewellery and likely unsustainable
• Missing governance and balance-sheet data: promoter holding N/A, debt/equity N/A, FairStock Score N/A
• P/B of 4.12 offers little asset cushion; book value of ₹2.18 provides weak downside support
• Profit growth from a tiny base can be misleading and may reflect one large order or cyclical uptick rather than durable demand

AI Analysis

Let me start with what I like: Viram Suvarn's numbers are startling. A ₹75 crore company earning over ₹5 crore on a trailing basis, ROE 30.28%, ROCE 19%, and a Piotroski score of 7/9—that is not a typical Indian jeweller. Sales grew 102.70%, profit grew 341.67%, and at ₹8.98 the P/E is only 14.04. A PEG of 0.06 screams cheap, if this growth is durable. But I must apply Graham's 'are you sure?' test. The latest quarter shows sales of only ₹8 crore and net profit of ₹3 crore—a 37.5% net margin. In a commodity business like gems and jewellery, where margins are usually thin and working capital is heavy, that margin is suspicious. I cannot find promoter holding, debt/equity is not available, and FairStock Score says insufficient data. This is precisely the kind of stock that fails my circle of competence and margin of safety tests. A small base makes growth percentages almost meaningless. One large order can swing a ₹75 crore market cap. The price is also 4.12 times book value. If ROE is real and reinvestment opportunities are strong, Graham might tolerate a premium, but I want proof over at least five years, not one quarter. Jewellery is cyclical and fashion-driven; there is little durable moat. I would not buy here. I would put it on a watchlist and demand transparent financials, cleaner margins, and evidence that this growth can continue without leverage. If the next four quarters confirm the numbers, perhaps there is a wonderful business. Until then, the numbers are too perfect, and in investing, too perfect usually means 'look again.'

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