Healthy Life (543546)

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

Key Financials

Strengths

• P/E of 11.66 with a market cap of ₹100 Cr implies a reasonable earnings multiple.
• Profit growth of 11.76% is higher than sales growth of 5.85%, suggesting improving efficiency.
• ROCE of 13.34% indicates respectable capital productivity.
• Piotroski F-Score of 7/9 points to generally sound financials.
• Latest quarter remains profitable at ₹1 Cr net profit on ₹52 Cr sales.

Concerns

• Latest quarter net margin is very thin at roughly 1.9%.
• No dividend yield means investors rely entirely on capital appreciation.
• Critical data missing: book value, debt/equity, and promoter holding; FairStock Score is also N/A.
• Extreme 52-week range of ₹5.37 to ₹61.39 suggests high volatility and possible speculative trading.

AI Analysis

Looking at Healthy Life, I first ask if I understand the dairy business. Yes, it's a consumer staple, but that doesn't make every small dairy a moat. At ₹40.19, the market cap is ₹100 Cr and the P/E is 11.66, so the market is asking me to pay about ₹100 Cr for roughly ₹8.6 Cr of earnings. That is not obviously expensive, but cheapness must be backed by strength. The sales growth is only 5.85%, while profits grew 11.76%. That better-than-sales profit growth can indicate efficiency, yet the latest quarter shows net profit of just ₹1 Cr on sales of ₹52 Cr—a net margin near 1.9%. A dairy company earning thin margins needs scale, pricing power, or low-cost operations; I don't have enough evidence of a durable competitive advantage. The Piotroski F-Score of 7 out of 9 suggests decent financial health, and ROCE of 13.34% is respectable. But I have no book value, no debt/equity, and no promoter holding data. Graham would say the first rule is adequate protection of capital. Without the balance sheet or ownership data, I cannot calculate a proper margin of safety. There is also zero dividend yield, so my return depends entirely on future growth and market sentiment. The 52-week range of ₹5.37 to ₹61.39 tells me this stock has been extremely volatile; at ₹40.19 it is far above the low and well below the high. This is not a horse I can back with high conviction. It may be a slow grower with reasonable earnings, but I need more information. I'd rather wait and watch than pay even a modest price for a business I can't fully see.

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