Windlas Biotech (WINDLAS)

FairStock Score: 34/100 — RISKY

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

Key Financials

Strengths

• Very low leverage with debt/equity of 0.06
• Promoter holding of 61.99% aligns ownership with management
• Sales growth of 19.53% indicates healthy demand
• ROE of 14.15% and ROCE of 16.96% are positive, though not exceptional
• Latest quarter sales of ₹233 crore show a decent operating scale

Concerns

• Profit growth is negative at -3.72% despite 19.53% sales growth, indicating margin compression
• P/E of 23.84 and P/B of 3.99 offer little margin of safety against a 14.15% ROE
• Piotroski F-Score of 4/9 and FairStock Score of 33/100 point to fundamental weakness
• Latest quarter net margin is only about 6.4%, and dividend yield is just 0.77%

AI Analysis

At ₹894.55, Windlas Biotech asks me to pay ₹1,591 crore for a business that earned roughly ₹67 crore trailing. That translates to a P/E of 23.84 and an earnings yield of barely 4.2%. Graham taught me not to pay high multiples for uncertain earnings. The company has a clean balance sheet—debt/equity of 0.06—and promoters own 61.99%, which is reassuring. But ownership alignment does not justify price. Sales grew 19.53%, yet profit shrank 3.72%. That is a red flag: growth is happening at the wrong end. The latest quarter, ₹233 crore of sales produced only ₹15 crore of profit, a margin of just about 6.4%. A 14.15% ROE and 16.96% ROCE are decent, but with book value of ₹224.05, paying 3.99 times book gives no margin of safety. The Piotroski F-score of 4/9 reinforces my worry; the FairStock score of 33 calls it risky. The dividend yield of 0.77% does not compensate for the valuation risk. I do not need spectacular growth, but I need predictable compounding. Here, profit has gone backward while the market price assumes continued expansion. This looks like a profit cycle turning down even as sales rise, and that is a dangerous combination. For an Indian retail investor, this is not a wonderful business at a fair price; it is an average business at a demanding price. I would prefer to wait on the sidelines until either the price drops or profits resume a clear upward path.

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