Arunaya Organics (ARUNAYA)

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

Key Financials

Strengths

• P/E of 8.79 appears reasonable for a small-cap industrial
• ROCE of 25.37% suggests efficient capital allocation
• Sales growth of 94.73% shows strong demand traction
• Promoter holding of 60.79% aligns owner interests
• Latest quarter sales of ₹54 Cr with positive net profit of ₹2 Cr

Concerns

• Profit growth of -14.98% despite sales growth, indicating margin pressure
• Piotroski F-Score of 4/9 signals below-average financial health
• Book value, debt/equity, and ROE are unavailable, leaving balance sheet risk unknown
• Zero dividend yield and micro-cap status offer little safety cushion

AI Analysis

At ₹19.70, Arunaya Organics trades at a P/E of 8.79 with a market cap of just ₹34 Cr. That looks like a small, reasonably priced business. But value investing demands more than a low multiple. The company shows a ROCE of 25.37%, which points to decent capital efficiency, and sales growth of 94.73% is eye-catching. Yet profit fell 14.98% in the same period. That tells me the top line is expanding but margins are being squeezed. In a cyclical industry like dyes and pigments, this could be a classic upswing where volume grows but pricing and costs create trouble. The latest quarter shows sales of ₹54 Cr and net profit of ₹2 Cr — a thin margin. Graham would ask: what are the earnings power and the balance sheet? Here I cannot calculate book value or debt/equity; unavailable data and a Piotroski score of only 4/9 are red flags. A score that low suggests weak fundamentals despite the growth headline. Promoter holding of 60.79% is good — owners remain invested. But zero dividend and a micro-cap listing add risk. The PEG of 0.09 looks absurdly cheap, but using sales growth to calculate PEG while profits are declining is dangerous. I would need consistent profitability and a stronger financial footprint before calling this a genuine bargain. As Buffett says, it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. So I’m interested, not yet invested.

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