Blackbuck (BLACKBUCK)

FairStock Score: 41/100 — MIXED

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

Key Financials

Strengths

• Sales growth of 49.95% shows strong top-line momentum.
• ROE of 94.86% indicates superior returns to shareholders, albeit on a tiny book value.
• Debt/Equity of 0.04 and Piotroski F-Score of 7/9 indicate a healthy balance sheet and sound operations.
• PEG of 0.79 suggests the market is pricing in reasonable growth relative to valuation.
• Latest quarter sales of ₹169 Cr with net profit of ₹32 Cr shows current profitability.

Concerns

• P/E of 27.29 and P/B of 28.22 leave little margin of safety.
• ROCE of 10.52% is far below the ROE, suggesting the underlying capital efficiency is modest.
• Profit growth of 19.14% lags sales growth materially; margin dilution may be occurring.
• Promoter holding of just 25.12% is low for an Indian listed company; alignment is a concern.
• No dividend means total shareholder return depends entirely on price appreciation.

AI Analysis

At first glance, Blackbuck is a fast-moving business with eye-catching numbers. Sales are up 49.95%, and return on equity is 94.86%. But I have learned not to get seduced by a single ratio. Book value is only ₹21.84, so that enormous ROE is built on a very thin equity base. The more meaningful measure, ROCE, is 10.52% — respectable but hardly the mark of a powerful economic franchise. With a market cap of ₹10,586 Cr and a P/E of 27.29, the market is asking me to pay a rich price. The balance sheet is clean: Debt/Equity is 0.04 and Piotroski F-Score is 7/9, which tells me financial health is sound. Sales momentum is real, but profit growth of 19.14% trails sales growth of 49.95%, and there is zero dividend yield. Promoter holding is only 25.12%; I like owners with more skin in the game. The PEG ratio of 0.79 makes the valuation look reasonable if rapid growth persists, but I cannot bank on that. The latest quarter shows sales of ₹169 Cr and net profit of ₹32 Cr; I need consistent profit expansion to justify the capitalization. FairStock score of 43/100 says mixed, and the 52-week range of ₹495.30 to ₹748.00 suggests the stock has already had a strong move. In Graham's language, price is what you pay, value is what you get. At current levels, I would need a larger margin of safety. It could be a wonderful growth story, but my discipline requires more evidence that profits catch up with sales before I commit new capital.

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