Venus Remedies (VENUSREM)

FairStock Score: 58/100 — STEADY

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

Key Financials

Strengths

• Debt/equity of 0.02 gives a fortress-like balance sheet
• Piotroski F-Score 7/9 indicates healthy financials
• Attractive trailing P/E of 11.78 and PEG of 0.23
• ROE of 14.29% with latest quarter net margin around 14%
• Price is far below the 52-week high, offering potential margin of safety if earnings sustain

Concerns

• Sales growth of only 2.12% means the 102.53% profit growth is not driven by top-line momentum
• Dividend yield is zero, so shareholders rely entirely on price appreciation
• Wide 52-week range of ₹424 to ₹2,043 suggests high share-price volatility
• ROCE of 11.06% is modest and FairStock score of 54/100 is mixed

AI Analysis

At ₹999.55, Venus Remedies is a puzzle. The market cap is ₹899 crore, and the price-to-earnings is 11.78, so the market is not assigning a glamour multiple. But my mentor taught me to first ask: what kind of business am I buying? Sales growth is only 2.12%, which tells me this is not a compounding growth machine. A 102.53% profit growth on a flat top line immediately smells of a margin recovery, cost controls, or possibly an exceptional item—not the organic demand growth I prefer. I would not project this earnings jump forward without proof. The balance sheet is the strongest part: debt/equity of 0.02 and a Piotroski score of 7/9. ROE of 14.29% is respectable, though ROCE of 11.06% shows the underlying business is not exceptional. At P/B of 2.71, I am paying a premium to book for a 14% ROE; that is fair, not a bargain. The latest quarter, ₹180 crore sales and ₹26 crore net profit, gives a 14% net margin and a possible forward P/E below 9 if it repeats. But 'if' is the operative word. The 52-week range of ₹424 to ₹2,043 tells me Mr. Market has been wild; I must keep my emotions in check. Promoter holding of 41.76% is meaningful alignment but not overwhelming. Overall, this shares traits of a turnaround: stable sales, recovering profit, low debt, and modest valuation. I would buy only with a margin of safety and after confirming the profit jump is real and sustainable. For now, it is interesting, but not a simple 'wonderful business at a fair price.'

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