Acrow India (513149)

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

Key Financials

Strengths

• Book value of ₹350 per share provides tangible asset backing; P/B of 1.94 is not extreme.
• Piotroski F-Score of 6/9 suggests acceptable financial health for a small-cap.
• Profit growth of 9.76%, though on a small base, is positive.
• Market cap of ₹44 crore keeps the company small, but the asset base offers some floor.

Concerns

• P/E of 231 and PEG of 23.68 imply valuation far ahead of fundamentals.
• ROE of 0.81% and ROCE of 2.10% show poor capital efficiency.
• Sales growth is 0.00% and latest quarter net profit is ₹0 crore, indicating no topline momentum.
• Zero dividend yield and missing promoter/debt data reduce investor confidence and transparency.

AI Analysis

Looking at Acrow India, I see a small iron and steel products business trading at ₹680.10 with a market cap of just ₹44 crore. This is not the kind of enterprise Graham would call an investment. The first thing I check is return on capital. Here ROCE is only 2.10% and ROE is a mere 0.81%. That tells me the business is consuming capital without earning a decent return. Sales growth is flat at 0%, and the latest quarter shows ₹7 crore in sales but net profit of roughly ₹0 crore. The P/E of 231 and PEG of 23.68 imply enormous growth expectations that the numbers simply do not support. The zero dividend yield makes matters worse for a shareholder-not receiving income means all value must come from price appreciation, which is uncertain. There are some positives: book value is ₹350 per share, so at ₹680 the investor is paying about 1.94 times book, not an absurd multiple for a metal products company. The Piotroski F-score of 6/9 suggests no immediate distress, and profit growth of 9.76%, while small, is at least positive. However, with promoter holding and debt-equity data unavailable, I have incomplete insight into governance and leverage. In the iron and steel space, I would expect cyclical swings; this looks like a cyclical trough where earnings are thin and valuation looks misleadingly expensive. I need evidence of improving margins, better capital allocation, and a true margin of safety. At this price, I would pass and only revisit if returns on capital improve significantly or the price falls closer to book value.

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