Auto.Corp.of Goa (505036)

FairStock Score: 63/100 — STEADY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Let me look at Auto.Corp.of Goa as a business, not just a ticker. The numbers scream growth: sales are up 80.86%, profits are up 194.90%, and return on equity is a handsome 27.79%. Return on capital employed of 20.16% suggests management is putting money to work intelligently. The Piotroski F-Score of 7 out of 9 gives me some comfort on the financial health side, and a dividend yield of 1.50% is a small token for waiting. At ₹2,049.55, the stock trades at 14.99 times trailing earnings, which is not unreasonable if the growth is durable. But I am wary. The P/B is 5.39, while book value is only ₹380.51. That means most of what I pay is for future growth, not for assets I can count on. The latest quarter bothers me even more: sales of ₹200 Cr produced only ₹11 Cr of net profit. That is a 5.5% net margin. If I annualise that quarter, the implied earnings yield is far lower than the trailing P/E of 14.99 suggests. I need to know whether this is a seasonal dip or the start of margin pressure. Auto components is a cyclical business, and a profit surge of 194.90% often happens when the industry is coming out of a downturn. A PEG of 0.11 looks too good to be true; those numbers appear when profits have just jumped and may not repeat. Also, promoter holding is not disclosed, and in India I want the owners to have real skin in the game. I would not chase this stock today. I would keep it on my watchlist and wait for evidence that growth and margins are durable.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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