Aritas Vinyl (544683)

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

Key Financials

Strengths

• P/E of 6.77 with 48.97% profit growth gives a PEG of just 0.26, suggesting the market is pricing in little growth.
• Piotroski F-Score of 7/9 indicates reasonably solid financial quality and improving fundamentals.
• ROCE of 13.08% is a respectable return on capital employed for a small-cap manufacturer.
• Latest quarter shows strong profitability: ₹49 Cr sales generating ₹3 Cr net profit.

Concerns

• Sales growth is only 3.52%, so the 48.97% profit surge is dependent on margin expansion, which may not be durable.
• Critical data is missing — book value, debt/equity, promoter holding, and ROE — making a Graham-style margin-of-safety check impossible.
• Zero dividend yield means no income support while waiting for the thesis to play out.
• The leather industry is cyclical and competitive, so today's margins can reverse quickly.

AI Analysis

At ₹17.37, Aritas Vinyl is a micro-cap leather-products company that grabs my attention with a price-to-earnings ratio of 6.77. The profit growth of 48.97% makes the PEG ratio look absurdly cheap at 0.26. But Benjamin Graham taught me to never judge a business by a single earnings number. Sales growth is only 3.52%, so the surge in profit is coming from margins and operating leverage, not from growing demand. Leather is a cyclical and competitive industry; margins can reverse just as quickly. The latest quarter, with sales of ₹49 Cr and net profit of ₹3 Cr, is encouraging, but one quarter cannot validate a cycle. The Piotroski F-score of 7/9 is a genuine positive, and ROCE of 13.08% suggests the capital employed is earning a reasonable return. However, there are dangerous missing pieces: no book value, no debt/equity ratio, no promoter holding, and no ROE. Without these, I cannot compute a margin of safety or determine whether the balance sheet is safe. The company pays no dividend, so the investor depends entirely on eventual price appreciation. At a P/E of 6.77, the market is not giving this business much credit; that can be an opportunity, but it is also suspicious when information is this sparse. I would classify this as a cyclical, not a franchise. I need to see whether sales growth accelerates, margins hold, and the balance-sheet data becomes visible before I would commit capital. Value is only meaningful when you understand the quality of the earnings.

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