Asston Pharmaceu (544445)

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

Key Financials

Strengths

• P/E of 13.58 is modest for a small-cap pharma company.
• ROCE of 36.62% indicates efficient use of capital.
• Profit growth of 77.89% shows improving earnings power, albeit from uncertain base.
• Piotroski F-score of 6/9 suggests broadly sound fundamentals.

Concerns

• Latest quarter net profit of ₹0 Cr on ₹15 Cr sales means current earnings are negligible.
• Sales growth of -3.44% shows a shrinking top line.
• No dividend, no book value, no debt/equity, no promoter holding data, and insufficient FairStock Score make assessment difficult.
• High profit growth may be from a low base or one-offs, not sustainable operating growth.

AI Analysis

Ben Graham taught me that price is what you pay, but value is what you get. At ₹85, Asston Pharmaceu has a market cap of only ₹72 crore and a P/E of 13.58. On the surface, that seems reasonably priced. But the latest quarter reminds me why a cheap multiple can be a trap: sales of ₹15 crore and net profit of effectively zero. A company that cannot earn a current quarterly profit is hard for me to value as a long-term owner. The reported profit growth of 77.89% sounds exciting, but my first question is always: from what base? Sales actually fell 3.44%, so this is margin expansion or cost cutting, not healthy demand. The 36.62% ROCE is genuinely impressive, and a Piotroski F-score of 6 out of 9 gives some comfort on financial health. Still, I cannot see book value, debt/equity, promoter holding, or a valid FairStock Score, so I am partly flying blind on the most important risk factors. The PEG ratio of 0.17 would only matter if the growth were durable. Given zero profit in the latest quarter and shrinking sales, I will not anchor on that number. There is also no dividend, so as a minority shareholder my only return is the business compounding capital. In pharma, I need a moat—patents, brands, or distribution—and this data provides no evidence of one. This looks like an early turnaround, but the market is asking me to trust the trajectory, not the facts. I would demand several quarters of growing revenue and real profits before I put my capital to work.

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