Aveer Foods (543737)

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

Key Financials

Strengths

• Sales growth of 30.94% and profit growth of 28.05% show a fast-growing business.
• ROE of 19.04% and ROCE of 17.39% indicate decent capital efficiency.
• Piotroski F-Score of 7/9 suggests reasonably sound financials for now.
• Small market cap of ₹195 Cr gives room for future expansion if execution continues.

Concerns

• P/E of 53.60 and PEG of 1.82 imply a rich valuation relative to even strong growth.
• Latest quarterly net profit of ₹1 Cr on ₹36 Cr sales means only about 2.8% net margin.
• Dividend yield of 0.05% provides negligible compensation while waiting.
• Current price of ₹485 is below the 52-week low of ₹493, and promoter holding as well as debt/equity data are unavailable.

AI Analysis

When I look at Aveer Foods, I see a small, growing packaged-food business that the market is pricing like a star. Yes, sales grew 30.94% and profits 28.05%. ROE of 19.04% and ROCE 17.39% are respectable. But let me pause. At ₹485, I am paying 53.6 times trailing earnings and 10.75 times book value for a company whose latest quarter generated only ₹1 Cr net profit on ₹36 Cr sales. That's a thin 2.8% margin. For that price, I need a wide and durable moat. I don't see evidence of one here. A PEG of 1.82 tells me even the growth is not cheap once adjusted. The dividend yield is 0.05%—essentially nothing, so I am not being paid to wait. The stock trades below its 52-week range of ₹493-798, which could mean Mr. Market is disappointed, or it could be a falling knife. I also note the debt/equity and promoter holding are not available. As Graham taught, when data is missing, I walk away rather than guess. The Piotroski score of 7 suggests decent financial health, but F-score is about past cleanliness, not future moat. In packaged foods in India, competition is intense; brands need scale and distribution. Aveer Foods is small—market cap only ₹195 Cr. It may be a growth story, but at this price the margin of safety is absent. A prudent investor would wait for either a better price or more evidence of sustainable competitive advantage. Ultimately, I am not a buyer today; I am watching.

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