Anthem Bioscienc (ANTHEM)

FairStock Score: 19/100 — RISKY

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

Key Financials

Strengths

• Very low leverage: Debt/Equity of 0.04 gives balance sheet comfort.
• Strong ROCE of 28.50%, suggesting efficient use of capital if sustained.
• Positive free cash flow of ₹266 Cr, indicating the business still converts earnings into cash.
• High promoter holding of 74.69% aligns owner interest with minority shareholders.
• Five-year revenue CAGR of 10.84% demonstrates past execution and franchise capability.

Concerns

• Sales growth is -15% and profit growth is -10.85%, so the business is contracting, not compounding.
• Valuation is rich: P/E of 78.36, P/B of 14.37, and zero dividend, leaving no margin of safety.
• Piotroski F-Score of 3/9 signals weak financial health and raises doubts about reported quality.
• ROE is not available; at 14.37 times book value, I need clarity on how much equity is actually earning.

AI Analysis

At ₹740.55, Anthem Bioscienc carries a market cap of ₹39,390 Cr. I am a value investor, so the first question is not whether it is a good company, but whether I am being paid to wait. At 78.36 times trailing earnings and 14.37 times book, I am not being paid. Book value is only ₹51.55 per share; the business would have to compound enormously to justify this premium. The latest quarter does show profit of ₹93 Cr on revenue of ₹423 Cr, and free cash flow of ₹266 Cr is positive. But that cash flow yield is less than 0.7% of today's market cap. With zero dividend, the entire case rests on future growth. And what does the scoreboard say? Sales have declined 15%, and profits have declined 10.85%. The five-year revenue CAGR of 10.84% proves the company could grow, but the current trend is in the wrong direction. ROCE of 28.5% and debt/equity of 0.04 are comforting, and promoter holding of 74.69% aligns owners with management. Yet the Piotroski F-Score of 3/9 is a loud warning. A good company with strong financial health usually scores much higher. Add that ROE is marked as not available, and I cannot verify the returns on equity that should underpin a 14 times book price. The 52-week range tells me the market has already lost enthusiasm: from ₹899 down to ₹741 is a real markdown. This might be a potential turnaround—profitable, low debt, cash-generative—but at these prices, the market is asking me to fund the recovery before it happens. Graham would say price is what you pay, value is what you get. Here, the price leaves no margin of safety. My discipline: wait for sales and profit growth to return, for the F-Score to improve, and for a valuation that reflects risk. Patience is the better investment.

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