Vedant Asset (543623)

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

Key Financials

Strengths

• Revenue growth is strong at 40.82%, showing the business is expanding.
• Profit growth is positive at 15.79%, supported by a Piotroski F-score of 7/9.
• Latest quarter revenue of ₹2 crore indicates the company is generating real operating activity.
• No dividend payout means the company is retaining capital for growth rather than paying shareholders.

Concerns

• P/E of 42.64 and PEG of 1.51 leave no margin of safety and price in heavy growth.
• Latest quarter net profit rounds to ₹0 crore, so reported earnings power is negligible.
• ROCE of just 6.87% suggests inefficient use of capital for a low-moat distributor.
• Missing disclosures on book value, promoter holding, and debt/equity make a Graham-style valuation impossible.

AI Analysis

At ₹38.56, this is a ₹11 crore micro-cap selling financial products. Graham taught me to judge by earnings power, not price action. The latest quarter shows sales of ₹2 crore and net profit of essentially ₹0 crore. Over the full year, profit grew 15.79%, but a P/E of 42.64 means I am paying more than 42 years of current earnings for this growth. The advanced PEG of 1.51 only reinforces that growth is not cheap. That leaves no margin of safety. The business is understandable — distribution of financial products — but where is the moat? The 40.82% sales growth is eye-catching, yet ROCE is just 6.87%. A business earning only ₹6.87 for every ₹100 of capital employed has to rely heavily on volume or leverage; with debt/equity not disclosed, I cannot judge financial safety. The Piotroski F-score of 7/9 suggests the company has managed its balance sheet reasonably in recent quarters, but with no book value, no promoter holding data, and an insufficient-data score from FairStock, I am effectively flying blind. The price is down from its 52-week high of ₹55.81, but a lower price is not a margin of safety. A 42.64 P/E on a nearly zero-profit quarter in a low-barrier distribution business is not something I can call an intelligent investment. Graham would demand quantitative proof and a discount to conservative value. This company offers neither. There is no dividend, so I am not paid to wait. I would wait for better disclosure, sustained profitability, and a far lower price before considering it. In Buffett's words, it is not my kind of business.

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