Baazar Style (STYLEBAAZA)
CyclicalFairStock Score: 12/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹365.25 |
| Market Cap | ₹2,725.4 Cr |
| P/E Ratio | 58.16 |
| ROCE | 8.94% |
| ROE | 17.4% |
| Dividend Yield | 0% |
| Profit Growth | 8.1% |
| Debt/Equity | 2.21 |
| Sales Growth | 28.67% |
| Promoter Holding | 45.71% |
| 52-Week Range | ₹229.95 — ₹444.95 |
| Sector | Retailing |
| Book Value | ₹60.39 |
Strengths
- Sales growth of 13.33% shows the underlying retail franchise is expanding
- ROE of 17.40% indicates existing shareholders earn a decent return on book equity
- Promoter holding of 45.71% aligns management interests with minority shareholders
- Latest quarter remains profitable with ₹19 Cr net profit on ₹466 Cr sales
Concerns
- P/E of 88.84 combined with profit decline of -34.75% implies severe overvaluation
- Debt/Equity of 1.91 and ROCE of 8.94% suggest leverage is masking weak operating returns
- Piotroski F-Score of 4/9 points to deteriorating financial fundamentals
- Zero dividend yield forces investors to rely solely on uncertain capital appreciation
AI Analysis
Let me start with what I see. Baazar Style is a speciality retailer with a market cap of ₹2,277 crore, but it trades at ₹380.95 with a P/E of 88.84. That is not a cheap price. For that multiple, I expect consistent earnings growth, but the latest year shows profit down 34.75%. Benjamin Graham would ask: where is the margin of safety? I don't find it. The company grew sales 13.33%, which is respectable, but the bottom line contracted sharply. Latest quarter sales of ₹466 crore produced only ₹19 crore net profit—a margin near 4%. In retail, such thin margins leave no room for error. Return on equity is 17.40%, but that is amplified by debt: debt-to-equity is 1.91, and return on capital employed is just 8.94%. That tells me leverage is doing the heavy lifting. If borrowing costs rise or sales stumble, equity returns could vanish. The Piotroski F-score of 4 out of 9 signals weak financial health. There is no dividend to compensate while I wait. Promoter holding of 45.71% is decent, but it doesn't justify valuation. At P/B of 7.30, I'm paying over seven times book for a business whose return on capital barely exceeds its cost. This looks more like a cyclical retailer caught between expansion and pressure on margins. I would need a substantial margin of safety to invest here. At this price, I don't have it.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer