Amrutanjan Healt (AMRUTANJAN)

FairStock Score: 24/100 — RISKY

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

Key Financials

Strengths

• Negligible debt with Debt/Equity of 0.01, indicating a very strong balance sheet
• High returns: ROE of 19.11% and ROCE of 22.45%
• Piotroski F-Score of 7/9 signals solid financial fundamentals
• Promoter holding of 46.52% aligns management with minority shareholders
• Sales growth of 14.90% shows demand momentum

Concerns

• Profit growth of only 5.82% is far lower than sales growth, suggesting margin pressure
• Valuation is expensive at P/E of 29.84 and P/B of 5.49, especially for a slow earnings grower
• PEG ratio of 2.88 indicates the growth is not cheap relative to earnings growth
• FairStock Score of 29/100 flags the stock as risky; dividend yield of just 0.77% provides limited downside support

AI Analysis

When I look at Amrutanjan Health, I first note the balance sheet: debt-to-equity of just 0.01. That is the kind of conservatism Graham would admire. The company earns a return on equity of 19.11% and a return on capital of 22.45%, with a Piotroski F-Score of 7/9, indicating decent financial health. Promoters own 46.52%, so their interests are aligned with shareholders. But I cannot ignore the price I am asked to pay. At ₹578, the stock trades at 29.84 times earnings and 5.49 times book value. That is a demanding price for a business whose profit growth is only 5.82%, even if sales are growing at 14.90%. The PEG ratio of 2.88 tells me the market is paying a rich premium for growth that isn't translating to the bottom line. Sales grew nicely, but profits lagged badly — that suggests rising costs, margin pressure, or lower operating leverage. The latest quarter shows ₹141 Cr in sales and ₹19 Cr in net profit, so the business is not collapsing, but the earnings quality is weaker than the sales story. The FairStock Score of 29/100 labels this risky, and I agree. The dividend yield of just 0.77% offers little comfort while waiting for growth. The stock is well off its 52-week high of ₹790.95, but being down from a high does not mean cheap. A wonderful business can be a poor investment at the wrong price. Amrutanjan has a solid franchise and a fortress balance sheet, but at nearly 30 times earnings with single-digit profit growth, I would need a significant margin of safety before investing. Patience, not optimism, must drive the entry price.

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