Yasho Industries (YASHO)

FairStock Score: 24/100 — RISKY

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

Key Financials

Strengths

• Promoter holding of 67.99% aligns ownership with management interests.
• Sales growth of 35.18% shows strong demand momentum for the business.
• Piotroski F-Score of 7/9 indicates improving financial fundamentals recently.
• Price has corrected sharply from the 52-week high of ₹4,475, reducing some valuation froth.

Concerns

• Extremely high P/E of 104.41 and P/B of 6.14 compared to ROE of just 5.51%.
• Latest quarter net profit of ₹5 crore on sales of ₹202 crore implies a very thin margin of about 2.5%.
• Debt/Equity of 1.38 is high, while ROCE of 7.23% is too low for the valuation.
• Dividend yield of 0.03% gives minority shareholders almost no income while waiting for growth.

AI Analysis

Yasho Industries illustrates why a falling knife can still bloody your hands. At ₹1,501, the market capitalizes this specialty chemicals business at ₹1,883 crore. Against that, the trailing P/E is 104 and price-to-book is 6.14. Benjamin Graham would ask: what am I getting for that premium? Book value is only ₹244.65 per share, and the company earns just 5.51% on equity and 7.23% on capital employed. That is not the kind of return on capital that justifies a 6x book multiple. The latest quarter tells the real story: sales of ₹202 crore produced merely ₹5 crore net profit, a margin barely above 2.5%. Profit growth of 648.78% sounds spectacular, but it is a miracle of a low base, not evidence of durable earning power. Debt/equity of 1.38 is uncomfortable for a business with such thin margins and high valuation; debt amplifies risk when earnings wobble. The Piotroski F-score of 7 does suggest some recent balance-sheet improvement, and promoter holding of 67.99% at least keeps owners and management aligned. Sales growth of 35.18% shows demand momentum, and the corrected price from ₹4,475 to ₹1,501 has removed some froth. But a PEG of 0.31 only looks cheap if 648% profit growth is repeatable; I doubt it. The dividend yield of 0.03% means minor shareholders are paid almost nothing while waiting. This is a fast grower in a cyclical input-cost-intensive sector, but at this price the margin of safety is absent. I would wait for a much lower valuation or sustained proof of high ROCE with lower debt.

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