Aritas Vinyl (544683)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

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