Vaibhav Global (VAIBHAVGBL)

FairStock Score: 56/100 — STEADY

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

Key Financials

Strengths

• ROE of 32.07% with debt/equity of only 0.16 indicates a capital-efficient, low-leverage business
• Profit growth of 40.71% and PEG of 0.72 suggest the valuation is not stretched if earnings momentum is durable
• Piotroski F-Score of 7/9 reflects solid financial health
• Promoter holding of 57.11% aligns management interests with minority shareholders
• Dividend yield of 2.66% provides some income support while waiting

Concerns

• P/B of 6.07 against book value of ₹36.69 leaves little asset-based downside protection at the current price
• Sales growth of 9.07% is far below profit growth of 40.71%, so margin expansion may not be sustainable
• ROCE of 14.03% is much lower than ROE, suggesting underlying operational returns are less impressive than headline ROE
• Latest quarter sales of ₹1,066 Cr and profit of ₹90 Cr are good, but the price leaves a thin margin of safety

AI Analysis

Let’s begin with what I like. Vaibhav Global produces a 32.07% return on equity while carrying debt of only 0.16 times equity. A 7/9 Piotroski score and promoter holding of 57.11% add to my comfort; this is not a promoter-dilution story. The dividend yield of 2.66% is a small but honest return for waiting. But Graham taught me to treat every share as part of a business, and to pay a price that leaves little room for disappointment. At ₹222.70, the P/B is 6.07 against book value of ₹36.69. That is not an asset bargain. A P/E of 18.02 is reasonable only if earnings are durable. Here I see a red flag: sales grew 9.07%, yet profit grew 40.71%. Profit growth so far above sales growth usually comes from margin expansion or cost control, which can be wonderful, but it is not sustainable forever unless top line keeps climbing. The latest quarter’s ₹1,066 Cr revenue and ₹90 Cr profit is healthy, but one quarter does not prove a long-term franchise. The 0.72 PEG ratio suggests the market is not overpaying if the high profit growth continues. However, ROCE of only 14.03% tempers my enthusiasm. A lower ROCE with a much higher ROE can mean returns are flattered by a small equity base. I want to understand the moat behind those returns—is it brand, distribution, or pricing power? The numbers alone don’t tell me. This is a decent business with good financial health, but at ₹222.70 the margin of safety is thin. I would not chase it here. Let the business prove that sales growth can catch up with profit growth, and let the price fall to a level that gives me a cushion. Then I will listen.

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