Amal (506597)

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

Key Financials

Strengths

• Sales growth of 36.69% shows strong revenue momentum.
• ROCE of 36.32% indicates efficient use of capital at the operating level.
• Latest quarter still profitable: ₹5 Cr net profit on ₹63 Cr sales.
• Share price is well below the 52-week high of ₹1,015, giving a de-rated entry point.

Concerns

• Profit growth fell 69.65% even as sales grew 36.69%, signaling severe margin compression.
• P/B of 4.96 is expensive against ROE of only 5.24%.
• Piotroski F-Score of 4/9 suggests weak overall financial health.
• Dividend yield of just 0.20% provides almost no income cushion.

AI Analysis

Looking at Amal, my first reaction is caution. The 52-week range tells me this stock has been through a brutal de-rating—from ₹1,015 down to ₹358. Price is ₹357.95, market cap ₹462 Cr. But cheap price by itself is not a margin of safety. The trailing P/E of 22.63 and P/B of 4.96, against an ROE of just 5.24%, make for a poor Graham combination. You are paying five times book value for equity that earns barely five percent. That fails my test. The one bright spot is ROCE of 36.32%. That suggests the operations, on a capital-employed basis, are efficient. But somehow that efficiency is not reaching shareholders—profit growth is down 69.65% even as sales grew 36.69%. This mismatch is a red flag. In the latest quarter, sales were ₹63 Cr but net profit was only ₹5 Cr, so margins are very thin. A high ROCE with weak net profit can arise from charges, taxes, or other items—but without debt/equity and promoter holding data, I cannot assess the balance sheet. The Piotroski F-score is 4/9—fundamental health is below average. Dividend yield is a negligible 0.20%, so there is no income cushion. The PEG of 0.62 is seductive, but it is based on sales growth, not earnings growth; Graham would not fall for that. Earnings are declining sharply, so a low PEG based on sales is misleading. This looks like a cyclical at a low point. I would need evidence that net profit margins are recovering and that sales growth is converting into earnings. Until then, the stock is a pass. Amal may one day be a fine business, but today the numbers offer no margin of safety.

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