Blue Jet Health (BLUEJET)

FairStock Score: 46/100 — MIXED

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

Key Financials

Strengths

• ROE of 25.91% and ROCE of 39.75% indicate exceptional capital efficiency and a possible economic moat.
• Near-zero debt (D/E 0.02) with Altman Z-Score of 5.35 and Piotroski F-Score of 6/9 reflects strong financial health.
• Sales growth of 20.56% and profit growth of 25.06% show a fast-growing, compounding business.
• Promoter holding of 79.81% tightly aligns management interests with minority shareholders.
• Latest quarter delivered ₹192 Cr sales and ₹40 Cr net profit, confirming ongoing operating momentum.

Concerns

• At P/E of 23.95 and P/B of 6.33, the price is far above Graham Number of ₹157.74, leaving a margin of safety of -156.94%.
• Free cash flow of only ₹11 Cr against ₹40 Cr quarterly profit suggests poor cash conversion and needs scrutiny.
• Dividend yield of just 0.30% offers negligible income support to the valuation.
• Negative EV/EBITDA of -7.27 and DCF intrinsic value of ₹0.35 are anomalous relative to reported earnings and raise data or fundamental red flags.

AI Analysis

Blue Jet Health has the financial fingerprints of a quality compounder. Return on equity of 25.91% and ROCE of 39.75% are outstanding, especially with debt/equity of just 0.02. This kind of high-return, near-debtless pharmaceutical business usually reflects an economic moat in specialised products or processes; Graham would admire the balance-sheet discipline. Sales grew 20.56% and profits rose 25.06%, so the business is still expanding at a healthy clip. Promoters own 79.81%, so owners have skin in the game. The Piotroski F-score of 6/9 and Altman Z-score of 5.35 reinforce that the company is financially safe. However, none of that gives me permission to overpay. At ₹413.75, the stock quotes at 23.95 times earnings and 6.33 times book value. Graham's number, a conservative estimate of intrinsic worth, is just ₹157.74, so the margin of safety is -156.94%. In plain words, I would be relying entirely on the growth story continuing; there is no asset-earnings cushion at this price. The dividend yield of 0.30% does not compensate for that risk. The latest quarter's ₹192 Cr sales and ₹40 Cr profit look good, but free cash flow of only ₹11 Cr is a warning: reported profits are not fully converting into cash. I would probe that gap before trusting earnings quality. The negative EV/EBITDA (-7.27) and the absurd DCF value of ₹0.35 are inconsistent with a profitable operating company, so I cannot give those numbers any weight. This is a fine fast grower, but at this price it fails my margin-of-safety test. I will wait for a much better price or demonstrated improvement in cash generation.

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