Speciality Rest. (SPECIALITY)

FairStock Score: 40/100 — MIXED

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

Key Financials

AI Analysis

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

At ₹101, Speciality Restaurants is a business I would want to study with open eyes. The economics, frankly, do not scream wonderful. The company earns an ROE of only 6.87% and ROCE of 7.97%. In an inflationary Indian restaurant market, that barely covers the cost of capital. A P/E of 20.31 and a PEG of 1.42 mean I am paying a full price for profit growth that is aided by cost controls or base effects, not necessarily durable compounding. Sales growth is just 7.80%, so the 20.75% profit growth must come from operational leverage or one-time gains. Let me not ignore the positives: debt/equity is 0.42, manageable; the Piotroski F-score of 7 suggests sound operational health; promoter holding of 50.31% is reassuring; and at ₹101, the stock sits far below its 52-week high of ₹167.46, offering a less optimistic entry than before. But cheapness is not the same as value. Book value is ₹67.03, so the market is paying 1.51 times book for a 6.87% ROE. That is not a Graham bargain. The latest quarter shows ₹129 Cr sales and ₹9 Cr net profit, roughly a 7% net margin. This is a capital-intensive, high-fixed-cost industry with intense competition. I would want same-store sales growth and return ratios to improve materially before calling this a wonderful business. Until then, this is a slow grower, deserving of watchfulness, not enthusiasm.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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