ASM Technologies (526433)

FairStock Score: 36/100 — MIXED

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

Key Financials

Strengths

• Strong revenue and profit momentum: sales growth 79.21% and profit growth 105.22%
• High capital efficiency: ROE 40.70% and ROCE 19.30%
• Piotroski F-Score 7/9 indicates sound operational and financial health
• PEG of 0.61 suggests the valuation is less demanding if the current growth rate is sustained

Concerns

• Very demanding valuation: P/E 56.70 and P/B 12.19
• Negligible dividend yield of 0.19%, so shareholders get no income cushion
• Latest quarterly net profit margin is roughly 7.8% on ₹116 Cr sales, which is thin for such a high multiple
• Key data gaps and red flags: promoter holding not disclosed, debt/equity not provided, and current price is below the stated 52-week range

AI Analysis

Good, this is the kind of growth that turns heads: sales up 79%, profit up 105%, recent quarter ₹116 Cr revenue and ₹9 Cr net profit, ROE 40.7%, ROCE 19.3%. The Piotroski score 7/9 also suggests an efficiently-run business, not an accident. But I have to pause. A company trading at 56.7 times earnings and 12.2 times book is being priced for perfection. The market is betting that the 105% profit growth continues for years. And what is the moat? Software consulting is a relationship business; without client concentration, pricing power, or proprietary IP, those returns can mean-revert quickly. The latest quarterly margin is roughly 7.8% on sales; that is thin for a growth stock at this valuation. The dividend yield of 0.19% shows shareholders are getting almost no current return, only a promise of future capital gains. The FairStock score of 36/100 is 'mixed' — not a clean bill of health. Also, the stated 52-week range does not even contain today's price, so I would want the data clarified before risking a rupee. Debt/equity is not provided, and promoter holding is not shown; in India, promoter skin in the game is vital. If I owned it, I'd stay disciplined: the PEG of 0.61 is the one comfort, but Graham would say a single year of 100% growth does not create a durable franchise. It is a fast grower, but fast growers can be dangerous when the growth rate slows. I would only consider a small position after studying order books, client mix, cash conversion, and the unexplained price-range anomaly.

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