Manorama Indust. (MANORAMA)

FairStock Score: 46/100 — MIXED

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

Key Financials

Strengths

• Sales growth of 73.30% and profit growth of 131.09% show strong momentum and operating leverage.
• ROE of 57.03% and ROCE of 23.03% indicate high return generation, though leverage contributes to the high ROE.
• Piotroski F-Score of 7/9 suggests decent earnings quality and financial health.
• Promoter holding of 54.32% aligns promoter interests with minority shareholders.

Concerns

• P/E of 39.43 and P/B of 22.57 leave a very thin margin of safety at the current price.
• Dividend yield of 0.04% is negligible, so returns depend entirely on continued capital appreciation.
• Debt/Equity of 0.67 combined with ROE of 57.03% suggests leverage may be inflating equity returns.
• FairStock Score of 46/100 is 'Mixed', indicating a cautious risk-reward balance.

AI Analysis

Manorama Indust. shows the kind of numbers that make a growth investor salivate, but I must first ask: what am I paying, and what am I getting? Sales grew 73.30% and profit 131.09% in the latest quarter; the company earned ₹68 crore on ₹363 crore of revenue. A 57.03% ROE is extraordinary, though I note debt/equity of 0.67, so leverage is part of the story. ROCE of 23.03% still confirms real operating returns, not just financial engineering. Piotroski F-Score of 7/9 gives me comfort that the reported earnings quality is okay. Promoters own 54.32%, so their interests are tied to mine. But here is where Graham's discipline enters: a P/E of 39.43 and a P/B of 22.57 against book value of ₹63.51 means I am paying nearly twenty-three times net worth for a food products business. The dividend yield is 0.04% — I receive almost no cash while waiting. The PEG of 0.39 looks alluring only if 131% profit growth persists, and that is an unlikely permanent state. FairStock Score of 46/100 is 'mixed', and I respect that caution. Mr. Market has already rewarded the business; the 52-week range of ₹1060.60 to ₹1867.00 shows volatility and uncertainty. I do not buy businesses merely because they are growing fast; I buy them when price leaves room for error. At today's price, the margin of safety is thin. A wonderful business can still be a poor investment at too high a price. Manorama is clearly a fast grower with quality metrics, but I would want a lower entry price or more evidence that growth can continue without excessive debt before committing new capital.

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