KRM Ayurveda (KRMAYURVED)

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

Key Financials

Strengths

• Promoter holding of 69.15% provides strong owner alignment.
• ROCE of 41.83% indicates efficient use of capital.
• Latest quarter delivered ₹48 Cr in sales and ₹8 Cr in net profit, showing real earning power.
• Pharmaceuticals industry listing with an Ayurveda brand identity gives a defined operating arena.
• Current price is well below the 52-week high, reducing some of the earlier euphoria.

Concerns

• P/E of 35.50 is expensive for a company with zero reported sales and profit growth.
• Piotroski F-Score of 3/9 signals weak overall financial health.
• No dividend yield, so shareholders receive no income while waiting.
• P/E implies trailing earnings around ₹12 Cr, yet one quarter alone shows ₹8 Cr profit — the consistency of earnings is unproven.

AI Analysis

When I look at KRM Ayurveda, I see a business with some attractive fragments but not a complete mosaic. A promoter holding of 69.15% is good; I like owners with skin in the game. A ROCE of 41.83% is genuinely impressive — if it can be sustained, it suggests the Ayurveda business earns well on invested capital. The latest quarter shows ₹48 Cr of sales and ₹8 Cr of net profit, so there is real economic activity underneath the shares. But the value investor's job is to weigh price against evidence, and here the evidence is mixed. The stock trades at ₹222.85, giving a market cap of ₹430 Cr and a P/E of 35.50. That is a high multiple. The company shows zero sales growth and zero profit growth, and it pays no dividend. Zero growth with a 35 times earnings price means the market is paying for a future that the numbers do not yet confirm. The Piotroski F-Score of 3 out of 9 is a red flag: it indicates weak financial health and poor fundamental scoring. Without book value or ROE data, I am flying partly blind, and Graham would never excuse that. The 52-week range of ₹173.00 to ₹343.95 shows the stock has been volatile; it has fallen materially from its high. This is not necessarily a bargain signal; it can be a warning. If the latest quarter's profit were annualized, it would be much larger than the P/E implies, but I cannot rely on one quarter. I need to see consistency. This looks like a slow grower at best, with no current growth and an expensive multiple. I would keep it on the shelf and wait for lower prices, better growth, or a stronger F-Score.

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