Amrapali Inds. (526241)

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

Key Financials

Strengths

• Latest quarter positive: ₹3 Cr net profit despite huge sales; sales growth of 30.77% shows momentum.
• Piotroski F-Score 7/9 indicates improving financial health on multiple operating signals.
• ROE of 15.78% is respectable for a microcap trading/distribution company.
• P/E of 14.82 is not expensive if the profit growth can be sustained.

Concerns

• Net margin is razor thin at roughly 0.02% (₹3 Cr profit on ₹15,003 Cr sales), leaving no room for error.
• Trading/distribution business lacks a durable moat; ROCE of 7.07% shows mediocre capital productivity.
• Zero dividend yield means shareholders get no cash return while paying 2.44 times book value.
• Debt/equity and promoter holding data are not available, limiting transparency for a small-cap investor.

AI Analysis

At ₹15.52, Amrapali Inds. is a puzzling small-cap. It trades at 14.82 times earnings with book value of ₹6.36 and a return on equity of 15.78%, but the numbers carry a cautionary tale. The latest quarter reveals the true nature of this business: sales of ₹15,003 crore produced just ₹3 crore of net profit—a margin of roughly 0.02%. That is not a business with pricing power; it is a trading and distribution operation surviving on razor-thin spreads. A 30.77% sales growth and a 1,000% profit growth sound remarkable, but 1000% growth from a base near zero is much less meaningful. The PEG of 0.03 is a statistical illusion, not a value signal. Benjamin Graham would ask: where is the margin of safety? The price is 2.44 times book, so I am paying a premium to asset value while receiving no dividend. ROCE of only 7.07% and a zero dividend yield offer little comfort. The Piotroski F-score of 7/9 is a mild positive, suggesting recent fundamentals are improving, but the absence of debt/equity and promoter holding data prevents a thorough review. As a trader, Amrapali has no durable moat—its large revenue can evaporate if commodity prices or credit terms move against it. This looks more like a turnaround situation than a quality compounder. I would wait for evidence of sustained margins, lower leverage, and management's capital allocation before putting my money at risk.

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