Apis India (506166)

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

Key Financials

Strengths

• Sales growth of 18.16% with latest quarter revenue of ₹110 Cr shows strong topline momentum.
• ROE of 18.26% and ROCE of 14.43% indicate decent capital efficiency, if the reported figures are reliable.
• Small market cap of ₹140 Cr leaves room for growth in a niche food products category.
• The company is still profitable at the latest quarter level, earning ₹4 Cr on ₹110 Cr sales.

Concerns

• Profit growth is -25.81%, yet the stock trades at a P/E of 38.11—a poor combination of declining earnings and high valuation.
• P/B of 26.92 against book value of ₹9.45 means there is virtually no asset-backed safety margin.
• Net profit margin is thin at roughly 3.6%, leaving little room for input-cost shocks or competitive pressure.
• Piotroski F-Score of 4/9 points to weak or deteriorating financial health, and zero dividend provides no income support.

AI Analysis

At ₹254.35, Apis India is not the sort of bargain I look for. The market is paying ₹140 Cr for a company whose latest quarter generated ₹110 Cr in sales but only ₹4 Cr in net profit—a thin margin of under 4%. Worse, while sales grew 18.16%, profit fell 25.81%. A 38.11 P/E on declining earnings is a dangerous combination, and the 26.92 P/B against a book value of ₹9.45 gives me no margin of safety. If the business stumbles, there is no asset cushion and no dividend yield to compensate; the 0.00% dividend means I must rely entirely on future growth. The 18.26% ROE and 14.43% ROCE are respectable, and the top line is expanding, but a Piotroski F-Score of only 4 signals weak financial health. The stock has run from ₹17.39 to ₹254.35 in a year, so a great deal of hope is already priced in. With a PEG of 2.10 based on sales growth, the growth is expensive; actual earnings growth is negative. In the 'Other Food Products' space, durable moats are hard to create. Unless Apis India has a strong brand, distribution edge, or pricing power, high returns may attract competition and squeeze margins further. I would need evidence of margin expansion, stable leverage, and consistent profit growth over multiple quarters before this becomes an attractive investment. Until then, this is a business to watch, not a business to buy.

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