Quest Laborato. (QUESTLAB)

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

Key Financials

Strengths

• P/E of 14.04 with reported profit growth of 416.67% gives an exceptionally low PEG of 0.05, assuming growth continues.
• ROCE of 26.87% indicates efficient use of capital in the pharmaceutical business.
• Promoter holding of 66.78% aligns promoter interests with minority shareholders.
• Piotroski F-Score of 7/9 suggests improving or sound financial fundamentals.
• Latest quarter net profit of ₹4 Cr on sales of ₹31 Cr shows a healthy profit margin in the current period.

Concerns

• Dividend yield is zero, so shareholders receive no income while waiting for growth to materialize.
• Profit growth of 416.67% is likely from a small base and may not be sustainable or repeatable.
• ROE, book value, and debt/equity are not available, making the balance sheet and true profitability hard to assess.
• Small market cap of ₹198 Cr and a wide 52-week range indicate potential volatility and limited institutional coverage.

AI Analysis

Looking at Quest Laborato, I begin, as always, with the numbers. A market cap of ₹198 crore and a P/E of 14.04 means the market is asking a reasonable price. My friend Graham would be pleased that the latest quarter's profit of ₹4 crore, annualized, backs the earnings story. Yet I focus on consistency: sales are up 106.27% and profit up 416.67%. Such numbers attract attention, but they also invite suspicion. A 416% profit jump from a low base can be a statistical illusion. The PEG of 0.05 implies extraordinary cheapness only if the growth continues; a patient investor would need to see more quarters to believe it. The business earns a ROCE of 26.87%, which suggests management is putting capital to good use. Promoter holding of 66.78% also aligns owners and management. The Piotroski F-score of 7 out of 9 points to improving financial health. But I cannot calculate ROE or debt-to-equity from the data, and a zero dividend means I get no cash return while I wait. A ₹119.70 per share price sits between the 52-week range of ₹84.00 and ₹152.60, so there is no obvious margin of safety. I would call this a fast grower, not a stalwart. The growth is real in the recent figures, but the moat is unproven. Small-cap pharma is capital-hungry and competitive. I would want to track whether sales and profit can compound at even a fraction of today's rates. If growth fades, a P/E of 14 becomes less compelling; if growth continues, the market may eventually re-rate the stock. My discipline is to demand evidence, not hopes.

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