Thyrocare Tech. (THYROCARE)

FairStock Score: 43/100 — MIXED

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

Key Financials

Strengths

• High ROE of 26.54% and ROCE of 24.78% with negligible debt/equity of 0.05 show strong capital efficiency and financial safety.
• Profit growth of 74.99% and latest quarter net margin of roughly 14.3% (28 Cr profit on 196 Cr sales) indicate operating leverage.
• Promoter holding of 60.93% aligns management interests with minority shareholders.
• Piotroski F-Score of 7/9 reflects sound profitability, leverage, and efficiency fundamentals.
• Dividend yield of 1.78% provides some income while growth continues.

Concerns

• P/E of 44.10 and P/B of 12.99 leave little margin of safety for a business with only 17.85% sales growth.
• Profit growth far exceeding sales growth is unlikely to be sustainable and could reverse.
• FairStock Score of 44/100 and the stock being 40% below its 52-week high suggest mixed sentiment and possible earnings challenges.
• Book value of 30.41 rupees is thin relative to the current price, so asset support is minimal.

AI Analysis

At 395 rupees, Thyrocare is not a bargain by Graham's arithmetic. The P/E of 44 and P/B of 13 would make him wince, and the book value of 30.41 means you are paying over 12 times for the equity cushion. Yet quality deserves a premium. The Company earns 26.54% on equity and 24.78% on capital, with negligible debt of 0.05 times equity. That is a business with discipline and strong capital efficiency. But I must separate a wonderful business from a wonderful investment. Sales grew only 17.85% while profit grew 74.99%. A profit-to-sales wedge of roughly four times is rare and suspicious; either margins improved dramatically or there are one-off tailwinds. The FairStock score of 44/100, and the stock is 40% below its 52-week high of 662. The market is skeptical. With P/E 44.1 and PEG 0.95, you are paying for perfection, and because profit growth is high, the PEG flatters. If diagnostics pricing pressure returns and profit normalizes toward sales growth, the multiple is vulnerable. The balance sheet is fortress-like, and a Piotroski F-Score of 7/9 confirms sound fundamentals. Promoters own 60.93%, so interests are aligned. Dividend yield of 1.78% provides a small wait. My approach: this is a fast grower, not a deep-value Graham special. I would need confidence that the 75% profit growth can persist for several years, or I would wait for a lower price. A good company, but not necessarily a good stock at this price.

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