Azad India (504731)

FairStock Score: 20/100 — RISKY

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

Key Financials

Strengths

• Latest quarter is profitable: ₹1 Cr net profit on ₹29 Cr sales, so operations are not currently loss-making.
• Profit growth of 386.96% indicates an earnings recovery from a very low base, typical of a cyclical upturn.
• Piotroski F-Score of 5/9 is not a distressed score and suggests some financial/operational improvement.
• Positive book value of ₹9.83 per share gives a tangible asset base, though the market price is far above it.

Concerns

• P/E of 467.08 is extreme; trailing earnings are only about ₹1.1 Cr against a ₹517 Cr market cap.
• ROCE of -0.28% and ROE of 2.19% show poor capital efficiency and failure to earn the cost of capital.
• Sales growth is 0.00%, so the profit spike is likely a base effect rather than sustainable demand growth.
• Promoter holding and debt/equity are N/A, creating a transparency and balance-sheet red flag.

AI Analysis

At ₹163.35, Mr. Market is asking me to pay ₹517 Cr for a steel products company that earned only about ₹1.1 Cr trailing — that is a P/E of 467 times. I cannot call that investment; it is speculation. The latest quarter shows ₹29 Cr sales and just ₹1 Cr net profit, so the margin is razor thin. The 386.96% profit growth sounds impressive, but a 467 P/E reveals the base was almost nothing. Meanwhile sales growth is 0.00%. No growth in revenue, no pricing power in steel, and no dividend. Where is the moat? There is none. Book value is only ₹9.83 per share, so I would be paying 16.6 times book for a business earning a 2.19% ROE and a negative ROCE of -0.28%. The company is not earning its cost of capital. With zero dividend yield, I get no cash while I wait. The 52-week range from ₹75.15 to ₹176.80 tells me Mr. Market has been excited, but excitement doesn't create intrinsic value. The Piotroski F-Score of 5 suggests only moderate financial health, and the FairStock score of 20/100 flags this as risky. The missing promoter holding and debt data are further yellow flags; I cannot trust what I cannot see. And the PEG of 1.21 is built on a one-year base-effect jump, not a durable growth story. This smells like a cyclical steel business at an optimistic moment, not a compounding franchise. In Graham's language, price is what you pay, value is what you get. At 467 times earnings, the margin of safety is absent. I would leave this for speculators and revisit only if sustained revenue growth appears and ROCE turns convincingly positive.

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