Alfred Herbert (505216)

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

Key Financials

Strengths

• P/E of 6.90 and P/B of 0.96 indicate statistically cheap valuation relative to reported earnings and book value.
• Sales growth of 101.66% and profit growth of 109.90% suggest very strong recent momentum, with a PEG of just 0.07.
• Piotroski F-Score of 7/9 points to decent recent financial health across profitability, leverage, and efficiency metrics.
• Latest quarter is profitable, with ₹17 Cr of sales and ₹14 Cr of net profit.
• Price below book value of ₹1,555.69 provides a potential margin of safety if the stated book value is trustworthy.

Concerns

• ROCE of only 5.86% versus ROE of 411.84% is a glaring mismatch, suggesting possible non-core earnings, thin equity, or accounting distortions.
• Debt-to-equity ratio and promoter holding are not available, making the balance sheet and governance impossible to assess.
• Current price of ₹1,492.15 sits outside the stated 52-week range of ₹2,200–₹3,892, indicating possible data errors or very poor liquidity.
• Tiny scale and low dividend yield of 0.18% make this a speculative microcap rather than a stable compounding machine.

AI Analysis

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.

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