Aristo Bio-Tech (ARISTO)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

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