Apollo Ingredie. (503639)

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

Key Financials

Strengths

• Revenue growth of 154.13% and profit growth of 521.43% show strong recent momentum.
• Latest quarter is profitable: ₹3 Cr sales generating ₹1 Cr net profit, a 33% net margin.
• P/E of 11.79 with a PEG of 0.03 suggests cheapness if the high growth is sustainable.
• Piotroski F-Score of 7/9 indicates decent current financial health signals.

Concerns

• Market capitalisation of just ₹1 Cr makes this an extremely micro-cap with liquidity and survival risks.
• Price has collapsed from ₹54.44 to ₹9.10, showing severe volatility and possible loss of investor confidence.
• P/B of 11.10 versus book value of ₹0.82 means no asset-based margin of safety; zero dividend yield.
• Insufficient data: promoter holding and debt/equity are N/A, while ROCE of 10.57% is far below ROE, raising earnings quality questions.

AI Analysis

When I look at Apollo Ingredie., I try to remember that a good business is not the same as a good stock. The recent numbers are eye-catching: sales grew 154.13%, profit grew 521.43%, and the latest quarter shows ₹3 Cr sales and ₹1 Cr net profit, a 33% margin. At ₹9.10 with a P/E of 11.79 and a PEG of 0.03, the market seems to be pricing in very little future growth, and a Piotroski score of 7/9 suggests the financials are not deteriorating. But I am a value investor, not a momentum investor. The first red flag is size: a market capitalisation of just ₹1 Cr is not a business I can seriously evaluate or invest in with confidence. There is no promoter holding data, no debt/equity data, and no dividend. That is not an abundance of information; it is an absence. The share has fallen from ₹54.44 to ₹9.10, an 84% decline. That kind of volatility tells me the market itself does not know how to value this company. The ROE of 96.04% sounds extraordinary, but it is built on a book value of only ₹0.82, and ROCE is just 10.57%. When ROE is that much higher than ROCE, I suspect leverage or one-time items, not a franchise. A P/B of 11.10 also means I would be paying eleven times tangible assets for a small, unproven operation. Graham taught me that margin of safety comes from buying assets and earning power at a discount. Here I see high stated growth, but the base is tiny, the business moat is invisible, and the data is insufficient. If the growth continues for years, this could become something. I cannot make that leap on today's evidence. I would watch it, not buy it.

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