Apt Packaging (506979)

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

Key Financials

Strengths

• High sales growth of 53.87% indicates demand traction.
• Profit growth of 820% shows recent earnings recovery, albeit from a low base.
• Piotroski F-Score of 7/9 suggests improving operational/fundamental health.
• Positive ROCE of 5.86% provides some evidence of capital productivity at the operating level.

Concerns

• Negative ROE of -19.90% and zero latest-quarter net profit show weak profitability.
• P/E of 155.93 with ₹0 Cr latest quarter implies extreme valuation risk.
• No dividend yield and a tiny ₹19 Cr market cap create illiquidity and no income cushion.
• Book value, debt/equity and promoter holding are unavailable; balance sheet transparency is insufficient for a Graham analysis.

AI Analysis

At ₹34.91, Apt Packaging carries a market cap of just ₹19 Cr. In Graham's language, this is a micro-cap speculative situation, not a compounder. The P/E of 155.93 means the market is paying handsomely for current earnings, yet those earnings are wafer-thin: the latest quarter's net profit is effectively ₹0 Cr. A 820% profit growth sounds spectacular, but with a negative ROE of -19.90%, the underlying capital base is destroying value, not creating it. The business has negative or impaired book value that makes Graham's margin-of-safety test impossible. ROCE of 5.86% is better than the negative ROE, but still mediocre; the company earns little on capital. Sales growth of 53.87% is encouraging, but a small packaging firm with no pricing power, no promoter-holding disclosure, and no dividend is not a business we can confidently value. The Piotroski F-Score of 7/9 hints at improving fundamentals, and a PEG of 0.36 would be attractive only if the profit growth were sustainable from a healthy base. But with a latest quarter of zero profit, that growth is a low-base mirage. The 52-week range quoted is also inconsistent with the current price, a reminder of poor liquidity and data quality. At best this is a turnaround speculation: the operating momentum may be real, but an investor must be prepared to lose capital. I would demand a much lower price, positive book value, and evidence of durable profitability before acting. In Buffett's terms: 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' This appears to be a fair-to-weak business with a misleading price.

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