Jay Ambe Super. (544514)

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

Key Financials

Strengths

• Sales growth of 67.64% shows strong demand momentum.
• ROCE of 24.49% indicates efficient use of capital.
• Piotroski F-score of 7/9 suggests improving financial health.
• Latest quarter generated ₹31 Cr sales and ₹2 Cr net profit, a 6.45% margin, annualizing to roughly ₹8 Cr versus ₹178 Cr market cap if sustained.

Concerns

• Trailing P/E of 59.44 is expensive; TTM profit is only about ₹3 Cr, so the latest quarter is doing heavy lifting.
• Profit growth of 18.90% lags sales growth of 67.64%, signaling possible margin pressure.
• No dividend and insufficient data on book value, debt/equity, ROE, and promoter holding.
• Diversified retail generally has weak competitive moats and intense competition.

AI Analysis

Let me start with what I know: this is a small ₹178 crore diversified retailer, priced at ₹200.15. At 59 times trailing earnings, Mr Market is paying a fancy price. Charlie and I would rather buy a wonderful business at a fair price than a fair business at a wonderful price, but I'm not yet convinced this is a wonderful business. Sales grew 67.64%, which is eye-catching, yet profit grew only 18.90%. That divergence tells me competition or costs are eating the extra rupee of revenue. The latest quarter shows ₹31 crore sales and ₹2 crore profit, a 6.45% margin, but remember the trailing P/E implies total profit of only about ₹3 crore over the last twelve months. So this latest quarter is doing a lot of heavy lifting. One good quarter does not make an economic franchise. On the positive side, ROCE of 24.49% is genuinely good, and a Piotroski F-score of 7/9 points to improving financial health. But I cannot evaluate return on equity, debt, book value, or promoter holding—data critical to judging durability. In retail, moats are rare; customer loyalty is weak and competition is brutal. With zero dividend, the only return comes from price appreciation, which makes margin of safety all the more vital. At a PEG of 1.37, the market is pricing near perfection. If growth slows or margins compress, the high multiple offers no cushion. I would wait for a lower price, more quarters of profit proof, and a clearer picture of the balance sheet before putting my money to work.

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