Entero Healthcar (ENTERO)
Fast GrowerFairStock Score: 14/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,416.6 |
| Market Cap | ₹6,165.48 Cr |
| P/E Ratio | 49.26 |
| ROCE | 8.71% |
| ROE | -0.82% |
| Dividend Yield | 0% |
| Profit Growth | -50.27% |
| Debt/Equity | 0.39 |
| Sales Growth | -21.18% |
| Promoter Holding | 52.42% |
| 52-Week Range | ₹944 — ₹1,919.25 |
| Sector | Retailing |
| Book Value | ₹388.09 |
Strengths
- Strong revenue momentum: sales growth of 25.57% with latest quarter sales at ₹1,707 Cr.
- Profit growth of 22.94% and Piotroski F-Score of 7/9 indicate acceptable short-term financial health.
- Conservative balance sheet with Debt/Equity of just 0.25.
- Promoter holding of 52.42% aligns management with minority shareholders.
Concerns
- Reported ROE is -0.82%, signaling poor shareholder-level returns despite reported profits.
- Valuation is expensive: P/E of 38.59, PEG of 1.59, and zero dividend yield.
- Very thin net margin—latest quarter net profit of ₹34 Cr on sales of ₹1,707 Cr is roughly 2%.
- FairStock Score of 33/100 flags the stock as risky, and pharmacy retail faces intense competition.
AI Analysis
Entero is a business I can understand—pharmacy retail and distribution in India. But understanding is not enough. In Graham's language, price is what you pay, value is what you get. At ₹1,257.15, the market caps the company at ₹4,490 crore. That is 38.59 times earnings and 3.29 times book. The market is paying for a fast-growing chain, and growth has indeed come: sales grew 25.57%, profit grew 22.94%, and the latest quarter shows ₹1,707 crore sales with ₹34 crore profit. The Piotroski F-Score of 7/9 suggests recent fundamentals are not deteriorating. Debt/equity of 0.25 is conservative, and promoter holding of 52.42% is reassuring. But here is my problem: the reported ROE is -0.82%. A business that earns less than nothing on shareholders' equity is not compounding value, no matter how fast sales rise. ROCE of 8.71% is modest and below what I would demand from a quality compounder. The latest quarter's net margin is only about 2%—pharmacy retail is a high-volume, low-margin game. At a P/E of 38.59 and a PEG of 1.59, I am being asked to pay a premium for growth that may be fragile; one stumble in margins could compress the multiple. There is no dividend to cushion the wait. FairStock score of 33/100 says risky, and I agree. I would keep this on my watchlist and wait for a margin of safety. A fast-growing business at a premium price is only attractive if the underlying economics truly compound. Right now, the thin margins and negative ROE stop me from putting money to work.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer