Wanbury (WANBURY)

FairStock Score: 60/100 — STEADY

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

Key Financials

Strengths

• Moderate P/E of 14.35 on annualised latest quarter profit of roughly ₹64 Cr makes earnings look reasonably priced.
• Sales growth of 21.73% and latest quarter revenue of ₹162 Cr indicate business momentum.
• Piotroski F-Score of 7/9 suggests improving operating and financial fundamentals.
• ROCE of 33.93% and promoter holding of 43.07% point to operational discipline and promoter skin in the game.

Concerns

• Price-to-book of 23.95 against book value of ₹10.93 leaves almost no asset cushion; the 166.95% ROE is flattered by a tiny equity base.
• 1000% profit growth is likely a low-base effect; using that to compute PEG is misleading.
• Zero dividend yield means no income support; total return depends entirely on future price re-rating.
• Debt/equity is not disclosed, so leverage and refinancing risk cannot be judged.

AI Analysis

At first glance, Wanbury looks tempting: price-to-earnings of 14.35 with sales growing 21.73%. But Graham taught me to look beyond the income statement to the balance sheet, and this one is thin. A book value of only ₹10.93 against a market price of ₹261.72 means the price-to-book ratio is 23.95. There is very little asset cushion if the business stumbles. The ROE of 166.95% and ROCE of 33.93% sound spectacular, but a high return on a tiny equity base can evaporate quickly. Profit growth of 1000% is even less reliable; it usually means last year's base was depressed. I would not equate that with durable compounding. The latest quarter revenues of ₹162 Cr and net profit of ₹16 Cr, when annualized, roughly justify the P/E, so the market is not pricing in much growth beyond today. A zero dividend yield means I must depend entirely on price appreciation, and with promoter holding at 43.07%, minority shareholders need to watch governance and cash flow carefully. The Piotroski F-score of 7/9 is reassuring, but I cannot excuse the missing debt/equity figure; without leverage details, I cannot assess financial risk. If the company's recent profit jump is due to a genuine turnaround and it can keep revenue growing at over 20% while converting to cash, then ₹261 may be a reasonable price. But Graham's margin of safety is weak when book value is ₹10.93. I want to see several quarters of consistent earnings before I call this an investment. For now, it is a recovery story with an attractive headline P/E and a fragile balance sheet. I would only monitor it, not buy it.

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