Amanta Healthcar (AMANTA)

FairStock Score: 24/100 — RISKY

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

Key Financials

Strengths

• Healthy promoter holding of 63.56% aligns management interests with minority shareholders
• Piotroski F-Score of 7/9 points to solid financial fundamentals and low near-term bankruptcy risk
• Positive quarterly performance with Sales of ₹74 Cr and Net Profit of ₹5 Cr
• Respectable ROCE of 14.80% indicates decent capital efficiency

Concerns

• P/E of 25.03 is expensive relative to single-digit profit growth of 8.18%, with PEG at 2.78
• Zero dividend yield offers no income cushion for investors in a slow-growth scenario
• Debt/Equity of 0.88 adds financial risk, especially if cash flows become lumpy
• ROE is undisclosed, reducing visibility into true shareholder returns

AI Analysis

Looking at Amanta Healthcar, I see a small pharmaceutical player with some virtues but not enough margin of safety. The business is profitable—latest quarter sales of ₹74 Cr and net profit of ₹5 Cr—and the Piotroski score of 7/9 suggests the balance sheet and operations are not deteriorating. Promoter holding at 63.56% is a plus; I like owners who eat their own cooking. Yet I cannot get excited at ₹137.38. The P/E of 25.03 for a company growing sales at only 9.85% and profits at 8.18% is hardly a bargain. The PEG of 2.78 tells me I am paying a hefty premium for mediocre growth. Graham would want a price that offers margin of safety, not one where the dividend yield is a big zero. Debt/equity of 0.88 is not catastrophic, but it makes me cautious in a sector where cash flows can be lumpy. ROCE of 14.80% is respectable, but the return on equity is not reported, and that lack of transparency bothers me. The stock has fallen from a 52-week high of ₹192, but the current price still does not compensate for the risks. This is a slow grower at best, with modest top-line expansion and no dividend to anchor total return. I would want to see lower leverage, higher and more consistent returns on capital, and a lower entry price—perhaps closer to the book value of ₹61.07—before I would consider it a true value proposition. As always, patience and discipline matter more than the latest quarterly numbers. Amanta may be a decent business, but for me, it is not a decent investment at this price.

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