Orkla India (ORKLAINDIA)
Slow GrowerFairStock Score: 23/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹549.75 |
| Market Cap | ₹7,530.98 Cr |
| P/E Ratio | 25.57 |
| ROCE | 13.55% |
| ROE | —% |
| Dividend Yield | 0% |
| Profit Growth | 11.1% |
| Debt/Equity | 0.02 |
| Sales Growth | 10.4% |
| Promoter Holding | 75% |
| 52-Week Range | ₹533.25 — ₹760 |
| Sector | Food Products |
| Book Value | ₹202.24 |
Strengths
- Very low debt/equity of 0.02 provides strong financial stability.
- Promoter holding of 75% aligns management interests with minority shareholders.
- Piotroski F-Score of 7/9 indicates acceptable financial health.
- ROCE of 13.55% is decent for a packaged food business.
- Latest quarter profitable with sales of ₹636 Cr and net profit of ₹57 Cr.
Concerns
- P/E of 30.85 is expensive given sales growth of 3.38% and profit growth of 3.74%.
- PEG ratio of 8.67 shows the valuation is far ahead of growth.
- Dividend yield of 0.00% means no cash return to shareholders.
- FairStock Score of 19/100 and P/B of 3.40 suggest limited margin of safety.
AI Analysis
Let me start with what I like. Orkla India has a fortress-like balance sheet: debt/equity of just 0.02, promoter holding of 75%, and a Piotroski F-Score of 7/9. These are signs of financial integrity. ROCE at 13.55% is respectable, and the latest quarter shows sales of ₹636 Cr with net profit of ₹57 Cr, so there is no immediate operational distress. But as Graham said, price is what you pay, value is what you get. Here I must stop and scratch my head. The FairStock Score of 19/100 calls this risky, and the numbers agree. Sales growth is only 3.38%, profit growth only 3.74%. That is barely above inflation. Yet I am being asked to pay a P/E of 30.85. Would I pay 31 years of earnings for a business growing less than 4%? Not unless it has exceptional pricing power and a clear runway. The PEG ratio of 8.67 confirms the price is far ahead of growth. P/B of 3.40 means the market values the company at 3.4 times book value of ₹191.10. For that premium, I need exceptional future returns. ROCE of 13.55% is okay, but not enough to justify a 30-plus multiple. Dividend yield is zero. A slow-growing, high-multiple business that pays no dividend must reinvest retained earnings into high-return opportunities. With sales and profit growth under 4%, I do not see that engine. A good company is not automatically a good investment. At ₹649.20, the margin of safety is missing. The odds are not in my favor. I will wait for a materially cheaper price or meaningful acceleration in growth before acting.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer