Quest Laborato. (QUESTLAB)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

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