Star Imaging (544482)

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

Key Financials

Strengths

• P/E of 5.90 with ROCE of 34.73% suggests a capital-efficient business available at a low multiple
• Profit growth of 61.84% and PEG of 0.17 indicate the market may be underpricing earnings momentum
• Latest quarter net margin of roughly 22% (₹10 Cr profit on ₹45 Cr sales) shows strong operating profitability
• Piotroski F-Score of 7/9 indicates healthy fundamentals across profitability, leverage, and efficiency

Concerns

• Revenue growth is only 6.10%; the earnings surge may be margin-driven and less sustainable
• Zero dividend yield and no promoter holding data leave minority shareholder alignment unverified
• Insufficient data on book value, debt/equity, ROE, and 52-week range prevents full validation
• A small-cap healthcare services low P/E could be a value trap if recent profit quality is not durable

AI Analysis

At ₹66.87, Star Imaging trades at only 5.9 times earnings, and the balance sheet ratios are mostly hidden from me. Graham taught that price is what you pay, value is what you get. A 34.73% ROCE is the kind of number that catches my eye, because it suggests the business is putting capital to work efficiently. Latest quarter revenue of ₹45 Cr and net profit of ₹10 Cr translate to roughly 22% net margin, which is excellent for any healthcare services firm. Still, I am bothered by the gap between 6.10% sales growth and 61.84% profit growth. That can happen when margins expand, but I cannot judge if it is durable without cash flow statements and segment details. The market cap is just ₹116 Cr and the trailing P/E is 5.9, so even modest continued growth would make the stock cheap. A PEG ratio of 0.17 is almost too cheap; it often points to low expectations or to a trap. Piotroski F-Score of 7 out of 9 gives me some comfort that the company is financially sound, but no promoter holding, debt/equity, or book value data prevents a full Graham check. The FairStock Score itself is insufficient, a reminder that the public picture is incomplete. I don't mind low dividends if capital is reinvested at high returns, but a zero yield and unknown ownership make me cautious. I would not buy on this data alone. I need to see audited financials, cash conversion, and a few more quarters proving that the 22% net margin is a trend, not a one-off. If this small-cap healthcare player can maintain returns and grow revenue, the current price offers a margin of safety. But in small caps, your partner matters—if promoters aren't aligned, even a good business can become a poor investment.

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