Artificial Elect (526443)

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

Key Financials

Strengths

• Sales growth of 271.89% and profit growth of 652.60% show strong momentum.
• Trailing P/E of 12.94 and PEG of 0.03 look optically cheap if the growth persists.
• Latest quarter sales of ₹64 Cr and net profit of ₹14 Cr indicate recent operating strength.
• Piotroski F-Score of 7/9 suggests decent near-term financial health.
• ROCE of 22.89% reflects efficient use of the modest capital base.

Concerns

• P/B of 277.13 with book value of just ₹0.30 leaves almost no tangible asset margin of safety.
• Trailing P/E implies roughly ₹11 Cr annual earnings, yet the latest quarter alone earned ₹14 Cr—sustainability is highly questionable.
• Price of ₹83.14 is near the 52-week low of ₹83.43, far below the high of ₹195.00, indicating severe market de-rating.
• Zero dividend, unknown promoter holding, and N/A debt/equity data leave transparency gaps.

AI Analysis

This business is being sold as a growth story, and the numbers are certainly loud. Sales are up 271.89% and profits up 652.60%, and the latest quarter brings ₹64 Cr of revenue and ₹14 Cr of net profit. For ₹144 Cr of market cap, a 12.94 P/E looks like a bargain—if that growth is durable. But I have learned to treat extreme growth with suspicion. The price is ₹83.14, almost exactly the 52-week low, after the stock traded at ₹195 not long ago. The market is sending a message. The balance sheet does not give me comfort: book value is just ₹0.30, so the P/B is a frightening 277.13 times. There is virtually no tangible asset cushion. A 3,446% ROE sounds magnificent, but it is mostly an artifact of a microscopic equity base, not a sign of quality. More importantly, the trailing earnings implied by the P/E are only about ₹11 Cr, while the latest quarter alone earned ₹14 Cr. That tells me the recent past was weak and the current burst may be a low-base or project-driven spike. The Piotroski score of 7 is decent, and ROCE of 22.89% shows the business is not destroying capital. Still, no dividend means shareholders are relying entirely on the market's continued appetite for this story. I need a much larger margin of safety, a clearer balance sheet, and proof that this growth can survive more than one or two good quarters. This is not a business I would blindly own; it is a fast grower in the speculative part of my pipeline.

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