N R Vandana (NRVANDANA)

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

Key Financials

Strengths

• ROCE of 18.85% indicates efficient use of capital employed.
• Piotroski F-Score of 7/9 suggests improving financial health and operational strength.
• Promoter holding of 73.39% aligns management interests with minority shareholders.
• Profit growth of 46.19% and latest quarter net profit of ₹6 Cr show near-term earnings momentum.
• P/E of 14.31 and PEG of 0.58 leave room for the stock to be reasonably valued if growth sustains.

Concerns

• Sales growth is only 2.79%, so profit growth is not backed by top-line expansion and may be margin-driven or from a low base.
• Book value, ROE, and debt/equity are unavailable, making balance sheet strength impossible to verify.
• Dividend yield is 0.00%, providing no income while waiting for the thesis to play out.
• The stock is near the lower end of its 52-week range in a competitive, low-moat garments industry, raising the risk of a value trap.

AI Analysis

At ₹49.70, N R Vandana is a small-cap garment company. Let me look at it as a business, not a price chart. It earns a return on capital employed of 18.85%, which is respectable for an apparel company. The Piotroski F-score of 7/9 tells me the fundamentals are improving. Promoter holding of 73.39% keeps control in interested hands. And with a P/E of 14.31, the price is not euphoric. The latest quarter, with ₹131 Cr sales and ₹6 Cr profit, suggests earnings momentum; net margin is about 4.6%. Profit growth of 46.19% is eye-catching. But a value investor must ask: where does this growth come from? Sales grew only 2.79%, so the profit jump is not from volume expansion. It may come from margins, cost controls, or a low base. In garments and apparels, such improvements can be fleeting. The industry is competitive and lacks pricing power; I see no durable moat. Dividend yield is zero, so I receive no cash while I wait. Worse, book value, ROE, and debt-to-equity are unavailable. Without the balance sheet, I cannot judge whether the company is sturdy or carrying hidden woes. The stock trades at ₹49.70, near the lower end of its 52-week range of ₹42.00-₹82.90; Mr. Market is not smiling. The PEG of 0.58 makes the story look cheap, but that ratio is only trustworthy if 46% earnings growth is sustainable. I am interested but not convinced. I need more quarters of real revenue growth and a clear balance sheet before I call this a wonderful business at a fair price. Until then, it remains a possible turnaround, not a proven compounder.

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