Vrundavan Planta (544011)

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

Key Financials

Strengths

• Sales growth of 26.45% shows expanding demand for the business.
• Piotroski F-Score of 7/9 indicates sound basic financial health.
• P/E of 12.38, combined with the stated PEG of 0.83, suggests the valuation is not excessive if growth continues.
• Latest quarter is profitable: ₹16 Cr sales with ₹1 Cr net profit, and ROCE of 10.38% shows reasonable capital efficiency.

Concerns

• Profit growth of only 3.31% lags far behind 26.45% sales growth, implying margin pressure and poor conversion of revenue into earnings.
• Book value, debt/equity, and promoter holding are not available, leaving balance-sheet risk and insider alignment unassessed.
• Zero dividend yield means shareholders get no income cushion while waiting for capital gains.
• Market cap of ₹22 Cr is very small, making the stock vulnerable to volatility and liquidity problems.

AI Analysis

At ₹42.10, Vrundavan Planta is a small ₹22 crore business. In Graham's world, small can be beautiful, but it also means less room for error. The positives are visible: sales rose 26.45%, the Piotroski score is a healthy 7/9, and ROCE of 10.38% shows capital is earning a reasonable return. The P/E of 12.38 is not demanding, and the stated PEG of 0.83 would make the stock look like a growth bargain. Yet I must look through the windshield, not the rear-view mirror. The latest quarter, with ₹16 crore of sales and only ₹1 crore of net profit, exposes a thin margin. Profit growth of just 3.31% lags far behind sales growth of 26.45%. That gap is the single biggest red flag: revenue without earnings is not wealth. On top of that, book value, debt-equity, and promoter holding are all not available. For a company of this size, I need balance-sheet transparency and promoter skin in the game before I can trust the story. The zero dividend means I receive nothing while I wait, so my return depends entirely on capital gains. The 52-week range of ₹30.10 to ₹55.00 tells me the market has already had mood swings on this name. At ₹42.10, I am neither excited nor frightened. I would need proof that margins can stabilize and that profit growth can catch up to sales growth. Until then, this is a possible fast grower, but not a proven compounder. Buffett would say it is better to buy a wonderful business at a fair price; Vrundavan Planta has not yet proven it is wonderful.

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