Flair Writing (FLAIR)
StalwartFairStock Score: 33/100 — RISKY
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹253.9 |
| Market Cap | ₹2,675.99 Cr |
| P/E Ratio | 19.16 |
| ROCE | 16.12% |
| ROE | 12.11% |
| Dividend Yield | 0.39% |
| Profit Growth | -0.4% |
| Debt/Equity | 0.06 |
| Sales Growth | 10.6% |
| Promoter Holding | 78.59% |
| 52-Week Range | ₹234.9 — ₹344.85 |
| Sector | Household Products |
| Book Value | ₹108.32 |
Strengths
- Almost debt-free with debt/equity of 0.05 and a healthy Piotroski F-score of 7/9.
- Strong top-line growth of 20.09%, with latest quarter sales of ₹318 Cr.
- High promoter holding of 78.59% aligns management with shareholders.
- ROCE of 16.12% and a profitable latest quarter (₹33 Cr net profit) show adequate capital efficiency.
Concerns
- Profit growth of 11.55% lags sales growth, indicating possible margin pressure.
- Valuation is rich at P/E 24.09, P/B 3.64, and PEG 1.52.
- Dividend yield of only 0.32% means shareholders rely heavily on capital gains.
- ROE of 12.11% is moderate for a company trading at a premium.
AI Analysis
At ₹329, Flair Writing is an interesting business, but not a screaming bargain. I like the balance sheet: debt/equity of 0.05 is almost debt-free, and a Piotroski F-score of 7/9 supports the healthy financial picture. ROCE of 16.12% and ROE of 12.11% are decent, though not exceptional; a truly wonderful franchise would earn far more on capital. Sales are growing at 20.09%, which is excellent in the stationery space, but profit growth is only 11.55%, suggesting margins are being squeezed or the company is spending aggressively to grow. That divergence bothers me. At ₹329, the stock trades at 24.09 times earnings and 3.64 times book value, with a PEG ratio of 1.52. For that kind of multiple, I need profits to grow at least in line with sales, not lag them. Book value is ₹90.30, so we pay a large premium for franchise quality and future growth. Dividend yield of 0.32% is negligible; total return depends on capital appreciation. Promoter holding of 78.59% is good for alignment but means limited floating stock and possible volatility. The latest quarter sales of ₹318 Cr and net profit of ₹33 Cr give roughly a 10.4% net margin, so the business is profitable, but the valuation leaves little room for disappointment. In the Graham tradition, margin of safety matters. Here the safety is mostly in the balance sheet, not the purchase price. I would want more proof of profit acceleration, or a lower price, before committing capital.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer