Kopran (KOPRAN)

FairStock Score: 29/100 — RISKY

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

Key Financials

Strengths

• Revenue growth of 16.87% shows there is demand for the company's products.
• Debt/equity of 0.31 indicates a conservatively financed balance sheet.
• Dividend yield of 2.28% provides some income support to shareholders.
• Promoter holding of 44.42% aligns management and shareholder interests to a meaningful extent.

Concerns

• Net profit fell 10.19% despite 16.87% sales growth, showing poor operating leverage.
• ROE of 4.89% and ROCE of 9.75% are too low to justify a 1.87 price-to-book multiple.
• P/E of 38.46 and PEG of 2.28 leave no margin of safety at the current price.
• Piotroski F-score of 4/9 and FairStock score of 22/100 point to weak financial health and high risk.

AI Analysis

At ₹161.05, Kopran is priced at 38.46 times earnings while profit fell 10.19% last year. That is not the sort of arithmetic Benjamin Graham would admire. Book value is ₹86.22, so I am paying 1.87 times book for a business that earns only 4.89% on equity. A bank fixed deposit can do better with far less risk. Return on capital employed is 9.75%, barely acceptable, and with 0.31 debt-to-equity the balance sheet is not the main problem. The operating problem is conversion: sales grew 16.87%, but net profit declined 10.19%, and the latest quarter's net margin is just ₹9 crore on ₹194 crore of sales, roughly 4.6%. That kind of growth without profit is value destruction. The 2.28% dividend gives a small reward, and promoter holding of 44.42% is positive, but a promoter who cannot generate returns on equity is not enough. The Piotroski F-score of 4 out of 9 suggests weak fundamentals, and the PEG ratio of 2.28 says even after falling from ₹219, the stock is not cheap. At a market cap of ₹637 crore, this is a small player in a competitive pharmaceutical market. I see no durable moat here — no pricing power, no proprietary product, no brand advantage. The FairStock score of 22 out of 100, marked risky, matches my read. Price-to-book of 1.87 is compounding the problem because low ROE cannot justify that multiple. This is a show-me story. I would not buy at this price. I would wait for either a much lower price, perhaps near or below book value, or years of demonstrated profit growth that closes the gap between sales and earnings. Without margin of safety, I pass.

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