Arihant Academy (ARIHANTACA)

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

Key Financials

Strengths

• Sales growth of 42.49% and profit growth of 51.28% show strong momentum.
• Promoter holding of 64.74% aligns owner interests with minority shareholders.
• Latest quarter is profitable with ₹14 Cr sales and ₹2 Cr net profit, implying a healthy net margin.
• Piotroski F-Score of 6/9 indicates moderately sound financial health.
• PEG ratio of 0.95 suggests growth is reasonably priced despite the high P/E.

Concerns

• P/E of 44.54 is demanding and leaves little room for any growth disappointment.
• ROCE is reported at 0.00% and ROE/book value are unavailable, making capital efficiency hard to verify.
• Small absolute scale—quarterly sales of only ₹14 Cr—limits the durability of the moat.
• Dividend yield of 0.20% is negligible, so returns depend almost entirely on future growth.

AI Analysis

Let me start with what I like. Arihant Academy is a simple education business, and the growth is impossible to ignore—sales up 42.49% and profit up 51.28%. The latest quarter shows ₹14 Cr in sales and ₹2 Cr in net profit, so it is genuinely profitable. A promoter holding of 64.74% tells me the owners' interests are tied to mine, which I value greatly. The Piotroski F-Score of 6 out of 9 suggests the financial health is decent, though not flawless. And at a PEG ratio of 0.95, the stock's 44.54 P/E is not as expensive as it looks if the company can keep compounding at even close to recent rates. But this is where my Graham instincts kick in. A P/E of 44.54 is a high price to pay. I would need many years of evidence that the growth is durable. ROCE is reported at 0.00%—which may be a data gap—but I cannot evaluate capital efficiency without reliable return metrics. There is no book value or ROE given, so I am flying partially blind. The dividend yield of 0.20% is negligible, so the return is almost entirely dependent on future growth. Also, the latest quarter's absolute numbers are small: ₹14 Cr in sales. A small education player can be vulnerable to changing preferences, regulations, or competition from larger institutes. I will not buy on hope alone. I want to see continued double-digit growth, better disclosure of balance-sheet returns, and expanding margins. If management delivers for another few years, the PEG story becomes more credible. Until then, my circle of competence says: admire the growth, but demand more evidence.

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