Entero Healthcar (ENTERO)

FairStock Score: 14/100 — RISKY

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

Key Financials

AI Analysis

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

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.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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