Hester Bios (HESTERBIO)
TurnaroundFairStock Score: 34/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹2,414.4 |
| Market Cap | ₹1,328.86 Cr |
| P/E Ratio | 15.2 |
| ROCE | 9.71% |
| ROE | 10.87% |
| Dividend Yield | 0.46% |
| Profit Growth | 87.69% |
| Debt/Equity | 0.53 |
| Sales Growth | 15.37% |
| Promoter Holding | 53.73% |
| 52-Week Range | ₹1,239.3 — ₹2,669 |
| Sector | Pharmaceuticals & Biotechnology |
| Book Value | ₹423.46 |
Strengths
- Sales growth of 22.46% and latest quarter sales of ₹77 Cr show demand traction.
- Promoter holding of 53.73% keeps management aligned with minority shareholders.
- Debt/Equity of 0.61 is manageable, not a heavily leveraged balance sheet.
- Price is well below the 52-week high of ₹2,669, offering a lower entry than the market's earlier euphoria.
Concerns
- Profit growth declined 24.79%, and latest quarterly net profit of only ₹9 Cr suggests weak margin conversion.
- P/E of 32.45 and P/B of 3.80 are rich for ROE of 10.87% and ROCE of 9.71%.
- Piotroski F-Score of 4/9 and FairStock Score of 32/100 point to deteriorating financial health and risk.
- The 52-week fall from ₹2,669 to ₹1,479 may reflect real business problems, not merely a bargain opportunity.
AI Analysis
Examining Hester Bios, I first notice the paradox of a 22.46% sales growth alongside a 24.79% profit decline. A business growing topline while earnings shrink demands explanation; as Graham would say, a single year's earnings is an illusion. The latest quarter shows ₹77 Cr sales and ₹9 Cr net profit, but that profit is too thin to justify a ₹1,329 Cr market cap at a P/E of 32.45. The ROE of 10.87% and ROCE of 9.71% indicate the company earns modestly on capital, hardly a fortress. Book value is ₹388.99, so paying ₹1,479.25 means a P/B of 3.80; I like buying assets at discounts, not at nearly four times book. Debt/Equity of 0.61 isn't alarming, but combined with a Piotroski F-score of 4/9, it tells me financial health is not improving. Promoter holding at 53.73% is good, because owners have skin in the game. But the price has fallen from a high of ₹2,669 to ₹1,479, and the FairStock Score of 32 labels it risky. With PEG at 1.44, the market is still paying for growth that isn't showing up in profits. I would not call this a wonderful business at a fair price; it's a risky business at a demanding price. I need a measurable durable competitive advantage and stable earnings before I consider investing. For now, this goes to the too-hard pile.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer