Remus Pharma. (REMUS)

FairStock Score: 50/100 — MIXED

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

Key Financials

Strengths

• Sales growth of 46.77% and profit growth of 24.91% show strong expansion.
• PEG of 0.66 suggests the P/E of 23.53 is reasonable relative to growth.
• ROCE of 19.64% and Piotroski F-Score of 7/9 indicate solid operating and financial health.
• Promoter holding of 70.95% aligns owner interests with minority shareholders.
• Latest quarter sales of ₹400 Cr and net profit of ₹22 Cr reflect continued momentum.

Concerns

• Book value, ROE and debt-to-equity are not available, leaving a major valuation and leverage gap.
• Profit growth of 24.91% lags sales growth of 46.77%, implying possible margin pressure.
• Dividend yield of 0.15% gives negligible cash return to shareholders.
• Price has fallen sharply from ₹952 to ₹642, showing volatility and market skepticism.

AI Analysis

At ₹642, Remus Pharmaceuticals is priced like a growth business, and my first job is to ask whether the growth is real and durable. Market cap is ₹788 Cr and trailing P/E is 23.53; sales rose 46.77% while profits rose 24.91%, giving a PEG of 0.66. The latest quarter shows ₹400 Cr of sales and ₹22 Cr net profit, so there is momentum. But I am careful: one quarter is not a franchise. What impresses me is capital efficiency. ROCE is 19.64%, Piotroski F-Score is 7/9, and promoters hold 70.95%. That combination indicates a business generating decent returns, with owners who eat their own cooking. The FairStock score of 49, however, tells me the signal is mixed. I cannot identify a wide moat from these numbers. Profit growth trailing sales growth suggests either pricing pressure or rising costs, not pricing power. And as Graham always said, price is what you pay, value is what you get. I cannot compute book value, ROE, or debt-equity because they are given as N/A. That is a serious gap for a value investor. Without knowing leverage and net asset backing, any estimate of margin of safety is guesswork. The dividend yield of 0.15% gives almost no cash return, and the share has fallen from ₹952 to ₹642, showing that the market is already testing the story. At 23.53 times earnings, with a PEG below 1, I would not call it overvalued if growth continues. But I would not yet call it a value buy. It is a Fast Grower with powerful sales momentum and incomplete disclosure. I want two or three more quarters that prove profit growth accelerates, and a balance sheet I can actually examine. Then I can decide whether this is a moat or just a moment.

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