Arunis Abode (526935)

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

Key Financials

Strengths

• Latest quarter shows positive net profit of ₹2 Cr on sales of ₹15 Cr, indicating some operating traction if sustained.
• Profit growth of 1000% shows an earnings recovery from a very low base.
• Piotroski F-score of 5/9 is not a failing score and suggests some improvement signals.
• Dividend yield of 1.09% provides a token cash return despite the small size.

Concerns

• Trailing P/E of 65.08 and P/B of 75.22 are extreme for a micro-cap with book value of just ₹0.54 per share.
• ROCE of -5.26% shows core operations are not earning an acceptable return on capital; the high ROE is a low-equity illusion.
• Zero sales growth alongside 1000% profit growth raises doubts about whether the profit jump is durable or a base-effect artifact.
• Stock is more than 90% below its 52-week high of ₹564.85, and missing promoter holding and debt/equity data leave transparency concerns.

AI Analysis

Let me begin with what this is not: it is not a business I would call a franchise. Arunis Abode is a micro-cap with a market capitalization of only ₹12 Cr, so the first question is survivability and honesty. The numbers are screaming caution. The trailing P/E is 65.08 and price-to-book is 75.22, while book value is a mere ₹0.54 per share. That means I am being asked to pay 75 times assets for a company whose core capital returns are poor: ROCE is -5.26%. The ROE of 262.86% is not a sign of quality; it is a math artifact of an almost nonexistent equity base. Any small profit divided by tiny equity gives a huge percentage. Sales growth is zero, yet profit growth shows 1000%. In Graham's language, a 1000% earnings increase from a low base proves nothing about durability. The PEG of 0.07 is seductive, but it only compounds the trap because the denominator is that unreliable growth spike. The latest quarter reports ₹15 Cr sales and ₹2 Cr net profit, but the trailing P/E of 65 suggests that level of profit is not yet annualized or sustained. One quarter is not a trend. The stock has collapsed from ₹564.85 to around ₹40.62, near the bottom of its range, which tells me the market has already repriced expectations harshly. Piotroski F-score of 5/9 is mediocre. Dividend yield of 1.09% gives little comfort. With debt/equity not available and promoter holding undisclosed, I cannot assess governance or leverage. There is no evident moat in diversified commercial services at this size. This is a speculative turnaround candidate, not a value investment. I need multiple years of consistent earnings and a visible route to positive ROCE before I would even consider buying. Mr. Market's quote near the low is not automatically cheap; sometimes a falling knife is just a knife.

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