Brooks Lab. (BROOKS)

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

Key Financials

AI Analysis

Brooks Lab is a classic example of why a low P/E can be an illusion. At ₹64.77, the market cap is ₹198 Cr, and the trailing P/E of 9.15 looks cheap. But Graham taught us to look beneath the surface. Sales are down 19.25%, and while profit growth of 358.22% sounds impressive, it likely stems from a weak base, not durable earnings. The latest quarter shows sales of ₹17 Cr and net profit of ₹6 Cr — a 35% margin, which is extraordinary for a pharma company. I'd ask: is that sustainable, or is it an aberration? ROCE is negative at -9.93%, meaning the company isn't generating a return on capital employed. That's a red flag for any business claiming operational health. ROE is 9.34%, but with negative ROCE, the equity return may be inflated by financial engineering or one-off gains. The balance sheet is clean — debt/equity of 0.07 — and promoter holding is a solid 52.62%. But zero dividend yield tells me shareholders aren't being paid to wait. The book value is ₹24.11, so P/B of 2.69 means I'm paying a premium for assets that aren't earning well. The 52-week range of ₹36.30 to ₹164.02 shows the stock was once a high flyer and has crashed. Is this a fallen gem or a value trap? At F-Score 5/9, fundamentals are mediocre. I'd need to see sales stabilize and ROCE turn positive before I commit. This smells like a potential turnaround, but the evidence is still incomplete. I'll wait for more data.

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