Viyash Scientific (VIYASH)
Slow GrowerFairStock Score: 13/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹255.65 |
| Market Cap | ₹11,219.89 Cr |
| P/E Ratio | 53.71 |
| ROCE | 8.47% |
| ROE | 0.96% |
| Dividend Yield | 0% |
| Profit Growth | 520.77% |
| Debt/Equity | 0.16 |
| Sales Growth | 600.82% |
| Promoter Holding | 61.41% |
| 52-Week Range | ₹178.13 — ₹298 |
| Sector | Pharmaceuticals & Biotechnology |
| Book Value | ₹66.7 |
Strengths
- Promoter holding of 61.41% aligns management interest with minority shareholders
- Piotroski F-Score of 7/9 indicates decent financial health
- Debt/Equity of 0.55 is moderate and not alarming
- Revenue growth of 10.90% shows some business expansion
- Latest quarter profitable with ₹858 Cr sales and ₹49 Cr net profit
Concerns
- Extremely high valuation: P/E of 72.82 and PEG of 8.52 versus only 6.20% profit growth
- Very low return on equity of 0.96% and modest ROCE of 8.47%
- Zero dividend yield provides no income support to shareholders
- Price to book of 8.37 against book value of ₹25.30 leaves no asset cushion
AI Analysis
Let me look at Viyash Scientific as if I were buying the whole business. The first thing I see is a market cap of ₹9,303 crore for a company that earned only about 1% on equity—ROE of 0.96%. Benjamin Graham taught me to demand reasonable earnings power relative to capital employed; here, ROCE of 8.47% is thin and below what a quality pharmaceutical franchise should produce. The balance sheet is not dangerous: debt/equity of 0.55 and a Piotroski F-score of 7/9 show financial stress is not the core issue. The problem is price. At ₹211.76 per share, the stock trades at 72.82 times earnings and 8.37 times book value, while book value is only ₹25.30. That leaves essentially zero margin of safety. Sales grew 10.90%, but profit growth trailed at just 6.20%, and the PEG ratio of 8.52 tells me the market is paying an absurd multiple for modest growth. There is no dividend yield, so the shareholder depends entirely on price appreciation and ever-rising expectations. Promoter holding of 61.41% is encouraging, and the latest quarter shows sales of ₹858 crore and net profit of ₹49 crore, but that is a thin profit margin. FairStock Score of 2/100 labels this risky, and I agree. This is a moderately leveraged business at best, but it is priced for perfection. I prefer a wonderful business at a fair price; this looks like a fair business at a wonderful price. I would pass.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer