Aplab (517096)

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

Key Financials

Strengths

• Reported profit growth of 109.27% and a PEG of 0.16 give an appearance of cheap earnings momentum.
• Latest quarter is profitable: ₹11 Cr sales and ₹1 Cr net profit, showing some residual earning power.
• P/E of 17.08 is not stretched if current earnings can be maintained.
• ROE of 87.47% is statistically high, though it reflects a very thin book value of ₹4.69.

Concerns

• P/B of 15.99 against book value ₹4.69 leaves no asset margin of safety.
• ROCE of -8.82% means the underlying business is not earning an acceptable return on capital employed.
• Sales declined 29.17%, so the profit growth may be coming from a low or non-operating base, not healthy core growth.
• Piotroski F-score of 5/9, zero dividend, and missing promoter holding/debt data reduce confidence.

AI Analysis

Let us examine Aplab as value investors would. At ₹75.01, the market cap is ₹176 Cr. The P/E of 17.08 may look reasonable, but Graham insisted we judge a stock by the assets and earnings behind it. Here the price-to-book is 15.99, while book value is only ₹4.69. That means we are paying a huge premium for a thin net worth; there is no margin of safety in the balance sheet. What about operations? ROCE is -8.82%, so the capital actually employed is not generating a positive operating return. I cannot trust the 109.27% profit growth when sales have fallen 29.17%. A low PEG of 0.16 is enticing, but it is built on a profit rebound from a weak base, not durable compounding. The latest quarter has sales of ₹11 Cr and a net profit of ₹1 Cr; that is a modest positive, but it does not change the picture of a shrinking business. The Piotroski F-score of 5 out of 9 is mediocre. There is no dividend, and with promoter holding and debt-to-equity unavailable, I cannot fully assess governance or leverage. As Buffett would say, it is far better to buy a wonderful business at a fair price than a weak business at a tempting multiple. Aplab is not a wonderful business; it may be a turnaround situation, but turnarounds rarely work out for minority investors. I would need to see sales stabilise, ROCE turn positive, and reported profits come from core operations before I consider investing. Right now, the ₹176 Cr market cap rests more on hope than on demonstrated value.

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