Alfred Herbert (505216)

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

Key Financials

AI Analysis

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

At first glance, Alfred Herbert looks like a Graham special: a P/E of 6.90, a P/B of 0.96, book value of ₹1,555.69 against a price of ₹1,492.15, and profit growth of nearly 110%. But I must dig deeper before calling it a bargain. The ROE of 411.84% is so extreme that it immediately makes me suspicious—perhaps the equity base is unusually thin, or earnings contain non-recurring items. ROCE of only 5.86% does not support such a phenomenal return on equity. The latest quarter shows ₹17 Cr of sales and ₹14 Cr of net profit, an 82% net margin that is highly unusual for an NBFC; I would question whether this is core lending income or some one-off gain. The debt-to-equity ratio is not available, promoter holding is not available, and the quoted 52-week range of ₹2,200–₹3,892 does not even contain the current price of ₹1,492.15. That inconsistency raises serious doubts about data quality and liquidity. With a market cap of just ₹123 Cr, this is a microcap, and small investors can be trapped in illiquid names. The Piotroski F-score of 7/9 and a PEG of 0.07 do suggest recent financial strength and remarkable growth at a low valuation. But if the earnings are not sustainable, the low P/E is an illusion. I cannot rely on numbers I cannot verify. I would demand a full annual report, loan book quality, cash flows, and an explanation of that net margin before investing. Price below book value is attractive only if the book value is real and the earnings power is genuine.

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