Aristo Bio-Tech (ARISTO)

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

Key Financials

Strengths

• Sales growth of 19.75% shows healthy demand traction in the agrochemical space.
• High promoter holding of 73.42% aligns owner interest with minority shareholders.
• ROCE of 12.42% suggests reasonable capital efficiency for a small-cap business.
• Large quarterly sales of ₹256 crore provide operating scale despite a small market cap.
• Reported PEG of 0.89 indicates the market is pricing in attractive future growth if margins recover.

Concerns

• Profit growth is negative at -8.35%, and latest quarterly net margin is razor-thin at roughly 1.6%.
• Piotroski F-Score of 4/9 reflects weak fundamental health and rising red flags.
• No book value, ROE, or debt-equity ratio disclosed; inadequate transparency is a serious concern.
• Tiny ₹65 crore market cap and thin dividend yield of 0.53% mean high volatility and low income support.

AI Analysis

At ₹108.15, Aristo Bio-Tech is a small, ₹65 crore pesticide business with promoters holding 73.42%. That high stake aligns owners with minority shareholders, but it also means the float is thin and price swings can be nasty. The 52-week range of ₹74.30 to ₹140.00 shows Mr. Market can't make up its mind. In Graham's language, small caps are often mispriced but also demand a margin of safety. The surface story is appealing: sales grew 19.75%, and if that growth translates into earnings at a PEG of 0.89, the stock looks inexpensive. But I don't invest on surface stories. Profit fell 8.35%; net profit of ₹4 crore on quarterly sales of ₹256 crore is a razor-thin ~1.6% margin. That tells me the company lacks pricing power or is facing cost pressure. Quarterly sales of ₹256 crore dwarf the entire market cap of ₹65 crore, yet the bottom line is tiny - that is a high-volume, low-margin game. ROCE at 12.42% is respectable but not exceptional, and the Piotroski score of 4 out of 9 is a warning signal rather than a badge of financial strength. I also notice no book value or debt-equity ratio in the data; when a business can't give me a balance sheet, I cannot judge its safety. The P/E of 17.57 is not excessive, but with declining profits, I won't anchor on reported PEG. Dividend yield of 0.53% offers little compensation while I wait. Agrochemicals are cyclical, tied to monsoon and farmer sentiment. This may be a decent niche business, but I need margin expansion, stable balance sheet, and honest disclosures before calling it a wonderful compounder. For now, I would watch it, not marry it.

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