Krishival Foods (KRISHIVAL)

FairStock Score: 42/100 — MIXED

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

Key Financials

Strengths

• Sales growth of 36.03% shows strong demand momentum in the core food products business.
• Low debt-to-equity of 0.18 provides financial cushion and limits balance-sheet risk.
• Piotroski F-Score of 7/9 indicates solid operational and financial health.
• ROCE of 14.81% suggests reasonable capital efficiency for a growing small-cap.
• Latest quarter sales of ₹74 Cr and net profit of ₹6 Cr show profitable execution at current scale.

Concerns

• P/E of 39.68 and P/B of 4.97 leave little margin of safety at current price.
• Profit growth of 433.91% is likely distorted by a low base or one-off factors and is not repeatable.
• Promoter holding of 37.21% is moderate; lower insider ownership reduces alignment with minority investors.
• Dividend yield of 0.08% means investors get no income support while waiting for growth.

AI Analysis

At ₹332, Krishival Foods is a small-cap food business with a ₹803 crore market cap. The first thing I notice is the growth: sales up 36.03% and reported profit up 433.91% in the latest numbers. But let me be honest—profit growth of 433% is almost never sustainable. Low base effects or one-off gains can flatter the numbers, so I'd want to strip out noise before paying 39.68 times earnings. On quality, the business has some encouraging signs. ROCE at 14.81%, debt-equity only 0.18, and Piotroski F-score 7/9. Those tell me management isn't over-leveraging, and the company is generating reasonable returns on capital. In my world, low debt and decent returns are necessary—but not sufficient—for a durable moat. However, I have to be careful with valuation. A P/E of 39.68 and price-to-book of 4.97 mean I'm paying a high price for future growth. Benjamin Graham said price is what you pay, value is what you get. At this price, I need growth to continue for many years. The PEG ratio 0.17 tries to argue the growth makes it cheap, but that math assumes the recent profit explosion continues, which is dangerous. Also, promoter holding at 37.21% is moderate; I like seeing owners with more skin in the game. Dividend yield 0.08% is negligible, so total return relies entirely on capital appreciation. The stock is down from its 52-week high of ₹508, trading nearer ₹332. That could be an opportunity, or it could be the market waking up to challenges. Overall, this is a fast grower with good fundamentals for its size, but not a classic Buffett-style bargain. I'd need to see sustained sales growth, stable margins, and no deterioration in return on capital before investing with conviction.

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