Austin Engg Co (522005)

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

Key Financials

Strengths

• P/E of 9.09 and P/B of 1.20 offer a reasonable entry valuation versus book value
• Sales growth of 15.36% and profit growth of 19.75% show positive operating momentum
• Piotroski F-Score of 7/9 suggests improving financial health
• PEG of 0.52 indicates the current growth is not fully reflected in the price

Concerns

• Low capital efficiency: ROE 6.76% and ROCE 8.04%
• Very thin latest quarter margin: ₹1 Cr net profit on ₹29 Cr sales
• No dividend yield, so total return depends entirely on uncertain capital gains
• Lack of data on promoter holding and debt/equity reduces confidence for a small-cap

AI Analysis

At ₹212.65, this is a ₹75-Crore small cap in industrial products. Graham would begin with the numbers: P/E of 9.09, P/B of 1.20, and book value of ₹176.64. That is not a deeply cheap asset play, but the valuation is reasonable. The Piotroski score of 7 out of 9 tells me the financial position is improving rather than deteriorating. However, Buffett looks for businesses with durable competitive advantages and high returns on capital. Here I see ROE of only 6.76% and ROCE of 8.04%, so the company is not yet compounding shareholder wealth impressively. The latest quarter had ₹29 Crore of sales but only ₹1 Crore of profit, a very thin margin. There is no dividend, so the investor must rely on earnings growth. The growth numbers are encouraging: sales up 15.36%, profit up 19.75%, and a PEG ratio of 0.52. That could make it an interesting fast-grower at a reasonable price if the growth is sustainable. But I cannot ignore the 52-week range: from ₹95.50 to ₹212.65, the stock has already more than doubled. The margin of safety has narrowed. Also, promoter holding and debt-to-equity are listed as not available; as a shareholder I need to know who is running the business and how much leverage exists. A single-digit ROE means growth may not create much value unless returns improve. I would keep it on my watch list, not buy it today. I need evidence that margins, returns, and management discipline are improving before I commit capital.

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