Alufluoride (524634)

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

Key Financials

Strengths

• ROE and ROCE both above 23%, indicating efficient capital use.
• Profit grew 51.28% on 23.09% sales growth, showing strong operating leverage.
• P/E of 15.10 is reasonable, and PEG of 0.41 suggests growth is not fully priced in.
• Piotroski F-Score of 7/9 suggests sound financial health.
• Latest quarter net profit of ₹9 Cr on ₹59 Cr sales implies healthy margins.

Concerns

• P/B of 3.79 means you are paying a hefty premium over book value.
• Commodity chemical business is inherently cyclical; no clear durable moat.
• Dividend yield of 0.66% is thin, so returns depend on capital gains.
• Debt/equity and promoter holding are not available, limiting full risk assessment.

AI Analysis

Let me examine Alufluoride the way Graham would. The market cap is ₹376 Cr, and the stock trades at ₹480.45. At 15.10 times earnings, the P/E is not unreasonable for a growing business. But the P/B of 3.79 against book value of ₹126.79 tells me I am paying a significant premium for the assets. Is that premium justified? The return on equity is 23.14%, and ROCE is 23.62%; those are strong numbers that suggest management knows how to generate value from shareholder capital. Profit growth of 51.28% on top of 23.09% sales growth shows operating leverage working in their favour. The latest quarter's profit of ₹9 Cr on sales of ₹59 Cr gives roughly a 15% margin, which is respectable for commodity chemicals. The Piotroski F-Score of 7 out of 9 also points to a sound financial position. That said, this is a commodity chemical business; I cannot pretend it has a wide moat. The wide 52-week range of ₹377.60 to ₹615.00 warns me that earnings and sentiment can swing. The PEG of 0.41 looks seductive, but Graham would caution against extrapolating 51% profit growth forever. The dividend yield is only 0.66%, so I am mostly relying on future earnings growth, not cash returns. Debt/equity is not available, so I cannot fully judge balance-sheet risk. At the current price, I am buying a fast-growing, well-run player, but I must watch whether the cycle turns and whether the ROE remains above 20%.

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