Bafna Pharma. (BAFNAPH)

FairStock Score: 17/100 — RISKY

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

Key Financials

AI Analysis

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

As a value investor, I like to buy a business for less than its worth, with a durable advantage and honest numbers. Bafna Pharma has some traits I respect. Promoter holding is 75%, so the people running the shop have real skin in the game. The balance sheet is reasonable: debt-to-equity of 0.36, and the Piotroski F-score of 7 out of 9 suggests improving financial health. Sales grew 15.37% and reported profit jumped 91.67%; at a P/E of 21.93 and a PEG of 0.41, the market is paying little for that growth. But let me be careful. The quality of the franchise is not obvious. Return on equity is 11.68%, and return on capital employed is only 8.34%; these are average numbers, not the kind of wide-moat economics I hunt for. The price-to-book of 4.07 means I am paying ₹139 for ₹34.12 of book value, and with no dividend, my only return is future price appreciation. The latest quarter tells me to temper excitement: sales of ₹38 Cr produced just ₹2 Cr of net profit, a thin margin. A 91.67% profit growth number can be flattered by a smaller base. Also, the 52-week range of ₹91.20 to ₹296.00 shows how volatile this stock can be. I need a margin of safety. At current levels, I am not getting it. This is a fast-growing small pharma with good governance signals, but I would not rush in. I prefer to watch, with a long leash.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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