Choice Intl. (CHOICEIN)

FairStock Score: 52/100 — MIXED

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

Key Financials

AI Analysis

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

As a Buffett-Graham investor, I ask first whether the price leaves room for error. Choice Intl. is a holding company with a ₹17,919 Cr market cap at ₹804.35. The business has grown fast: 5-year revenue CAGR of 47.48%, sales growth of 34.40%, and latest quarter sales of ₹303 Cr with ₹66 Cr net profit. Returns are respectable—ROE 20.35%, ROCE 19.95%—and leverage is moderate at Debt/Equity 0.50. The Altman Z-Score of 5.04 and Piotroski F-Score of 7/9 suggest financial strength, and promoter holding of 53.66% aligns management. The latest quarter’s ₹66 Cr net profit on ₹303 Cr sales implies roughly 22% net margin, which is healthy, but negative free cash flow means cash generation is not keeping pace with reported earnings. But I see no margin of safety. P/E is 69.46, P/B 9.51, EV/EBITDA 89.72, and the Graham Number is only ₹104.33. At ₹804.35, the margin of safety is -606.25%; I would be paying a huge premium for growth. Profit growth of 15.40% is good but lags sales growth, and free cash flow is negative at ₹-455 Cr. A holding company with negative FCF and no dividend (0.00% yield) must convince me it can convert accounting profit into cash. The stock is near its 52-week high of ₹860.50 and scores Mixed 52/100. Fast growth can mask overvaluation, but Graham would demand a discount, not a 9.5x book multiple. I would wait for cash flows to turn positive and valuation to cool.

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