Aviva Industries (512109)

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

Key Financials

Strengths

• Price-to-book of 1.17 provides modest asset backing: book value ₹20.11 against price ₹23.50.
• Latest quarter shows net profit of ₹1 crore on sales of ₹14 crore, indicating some earning capacity.
• Reported ROE of 30.46% is high on the surface, even if driven by a small equity base.
• Piotroski F-score of 5/9 suggests no immediate distress signal.

Concerns

• P/E of 130.25 is very expensive for a flat-sales trader; 1,000% profit growth from a tiny base is not reliable evidence of sustainable growth.
• ROCE of -2.35% means the core operating business is destroying capital; ROE may be flattered by non-operating items or a thin equity base.
• Data inconsistencies: market cap and P/E imply annual earnings around ₹0.03 crore, while the latest quarter reports ₹1 crore net profit; current price is also below the stated 52-week range of ₹47.09–65.63.
• No dividend, no promoter holding disclosure, insufficient data, and a ₹4 crore market cap signal illiquidity and governance risk.

AI Analysis

At first glance, this is exactly the kind of microcap I would normally ignore. Market capitalisation of ₹4 crore, a trailing P/E of 130, zero dividend, and promoter holding not even disclosed. Graham taught me to focus on facts, not stories; here the facts are inconsistent. The price-to-book of 1.17 is acceptable, with book value at ₹20.11 versus price ₹23.50, but book value is a poor anchor when ROCE is -2.35%. Negative operating return means the trading and distribution business is not earning enough on capital employed; the high ROE of 30.46% is likely a small-equity effect or dependent on non-operating items, not a repeatable operating engine. Sales growth is exactly 0.00%, so the reported 1,000% profit growth is mathematically suspicious or a base effect. The latest quarter shows ₹14 crore sales and ₹1 crore net profit, which is encouraging, but one quarter is not a trend. My arithmetic leaves me puzzled: at ₹4 crore market cap, a P/E of 130 implies annual earnings of just ₹0.03 crore, yet the company reports ₹1 crore net profit in the latest quarter. One of these numbers is not telling the real story. The 52-week range is also given as ₹47.09 to ₹65.63, far above today's ₹23.50, so either the price has collapsed or the data is unreliable. The Piotroski score of 5/9 is mediocre, and the so-called PEG of 0.13 is meaningless on a 1,000% profit growth number from a tiny base. There is no moat in trading and distribution. I cannot value a company with no sales growth, negative ROCE, incomplete disclosures, and a tiny float. This looks more like a possible turnaround if the latest quarter's profit level persists, but I need years of evidence, not one quarter. In Buffett's words, it is better to wait for a great business at a fair price. I will pass.

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