Aaradhya Dis. (AARADHYA)

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

Key Financials

Strengths

• Low P/E of 11.88 with 68.75% profit growth gives a PEG of 0.26.
• ROCE of 27.19% suggests strong capital efficiency.
• Sales growth of 22.48% and latest quarter net profit of ₹6 Cr on ₹60 Cr revenue show momentum.
• Promoter holding of 70.58% aligns management interests with minority shareholders.
• Piotroski F-Score of 7/9 indicates improving fundamentals.

Concerns

• No dividend yield; investor return depends entirely on continued growth.
• Book value, debt/equity, and ROE are not available, leaving balance-sheet risk undisclosed.
• Paper is a cyclical commodity business; 52-week range from ₹67.15 to ₹116.90 shows volatility.
• Latest quarter net margin of 10% can be squeezed by input cost or price cycle shifts.

AI Analysis

At ₹105, Aaradhya Dis. is a small-cap paper producer capitalizing at ₹152 Cr. The first thing that catches my eye is the combination of growth and price: earnings are growing 68.75% while sales are up 22.48%, yet the P/E is only 11.88. That implies a PEG of 0.26, which would be cheap if the growth is durable. ROCE of 27.19% is genuinely impressive—far above what I typically see in a capital-intensive paper business—and a Piotroski F-score of 7 out of 9 suggests improving fundamentals, not just a one-quarter fluke. The promoters own 70.58%; that aligns their interests with mine. But I have to stop and ask: what am I not seeing? Book value and debt/equity are not available; without those, I cannot calculate return on equity or judge the balance-sheet risk properly. The company pays no dividend, so I am dependent entirely on capital appreciation and reinvestment. Paper is a cyclical, commodity-like industry. The latest quarter shows net profit of ₹6 Cr on sales of ₹60 Cr, a 10% margin, which is decent but can evaporate quickly when paper prices turn. A 52-week range of ₹67.15 to ₹116.90 reminds me this is not an inherently stable business. I would not buy on faith alone. If I owned it, I would watch whether quarterly sales and margins continue to expand, and demand more disclosure on debt and book value. At 11.88 times earnings with 68.75% profit growth, the market is paying a reasonable price for visible momentum—but value requires certainty, and the missing data prevents me from calling this a Graham-style bargain.

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