Vaishali Pharma (VAISHALI)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹8.51 |
| Market Cap | ₹111.02 Cr |
| P/E Ratio | 141.83 |
| ROCE | 4.93% |
| ROE | 6.22% |
| Dividend Yield | 0% |
| Profit Growth | -9.72% |
| Debt/Equity | 0.27 |
| Sales Growth | -16.5% |
| Promoter Holding | 31.61% |
| 52-Week Range | ₹4.75 — ₹12.7 |
| Sector | Pharmaceuticals & Biotechnology |
| Book Value | ₹5.3 |
Strengths
- Low debt/equity of 0.23 means limited leverage risk on the balance sheet.
- Latest quarter is still profitable: ₹1 Cr net profit on ₹25 Cr sales, though thin.
- Book value of ₹5.11 provides some asset backing despite the modest premium.
- Promoter holding of 31.61% gives some alignment with minority shareholders.
Concerns
- P/E of 0.00 indicates no reliable trailing earnings to anchor valuation.
- Sales declined 11.68% and profits fell 9.72%, showing a shrinking business.
- ROCE of only 4.93% with ROE N/A suggests poor or uncertain capital productivity.
- Piotroski F-Score of 3/9 and zero dividend point to weak financial health and no cash return.
AI Analysis
Let me start with what I understand: pharmaceuticals can be a fine business, but a good industry does not make a good investment. Vaishali Pharma is selling at ₹8.29, a market cap of ₹91 Cr. The first thing I notice is a P/E of 0.00. To me, that means there is no meaningful trailing earnings to value, so I cannot build a case based on earning power. The company shows a book value of ₹5.11, but I am being asked to pay 1.62 times book for a business whose ROCE is only 4.93%. A business earning less than 5% on capital is not compounding; it is consuming capital. Sales have fallen 11.68% and profits are down 9.72%. In the latest quarter, sales were ₹25 Cr and net profit was ₹1 Cr—a very thin margin. The Piotroski F-Score of 3/9 only deepens my worry; the financial health signals are weak. On the positive side, debt/equity is 0.23, so the company is not drowning in leverage. Promoters hold 31.61%, which gives some skin in the game, although I would like to see more. There is no dividend. At this price, I am neither getting a wonderful business nor a bargain. Graham taught me that price is what you pay, value is what you get. Here I do not see enough evidence that value exists. This looks like a possible turnaround situation, but I need to see improving sales, stable or better margins, and returns on capital moving well above 5% before I get interested. Until then, I will pass.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer