Bafna Pharma. (BAFNAPH)
Fast GrowerFairStock Score: 17/100 — RISKY
Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹257.7 |
| Market Cap | ₹609.62 Cr |
| P/E Ratio | 54.95 |
| ROCE | 8.34% |
| ROE | 11.68% |
| Dividend Yield | 0% |
| Profit Growth | -97.78% |
| Debt/Equity | 0.39 |
| Sales Growth | -19.1% |
| Promoter Holding | 75% |
| 52-Week Range | ₹94.77 — ₹318 |
| Sector | Pharmaceuticals & Biotechnology |
| Book Value | ₹40.57 |
Strengths
- 75% promoter holding aligns interests with minority shareholders
- Debt/equity of 0.36 keeps leverage moderate
- Piotroski F-score of 7/9 points to sound fundamentals
- Sales growth of 15.37% and profit growth of 91.67% show momentum
- PEG of 0.41 suggests the growth is not fully priced despite P/E of 21.93
Concerns
- ROE of 11.68% and ROCE of 8.34% are middling, not evidence of a strong moat
- P/B of 4.07 is rich versus book value of ₹34.12
- No dividend; latest quarter margin is thin at roughly 5.3% of sales
- Profit growth may be low-base driven; 52-week range shows sharp volatility
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer