Agarwal Fortune (530765)

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

Key Financials

Strengths

• Reported ROE of 28.09% and ROCE of 25.31% are impressive, indicating efficient use of capital in the current period.
• The company is at least generating positive sales in the latest quarter at ₹1 Cr, and the P/E implies marginal annual profitability.
• A market cap of ₹8 Cr gives a tiny base; if the glass business turns, absolute growth could be rapid.

Concerns

• P/E of 50.40 with zero sales growth and zero profit growth means the price already discounts huge improvement.
• P/B of 14.41 against book value of ₹1.60 means most of the price is unsupported by tangible assets.
• Piotroski F-Score of 4/9 suggests weak financial health, and the latest quarter net profit is effectively ₹0 Cr.
• No dividend, no promoter-holding data, and no debt-equity disclosure reduce transparency.

AI Analysis

At first glance, Agarwal Fortune looks tempting: a 28.09% ROE and 25.31% ROCE are numbers any businessman would like. But I do not buy a business on a single ratio. I buy at a price that makes sense if the numbers cool off. Here, the price is ₹23.05 with book value of only ₹1.60; I am paying 14.41 times book. The market cap is ₹8 Cr, so this is a microcap, but microcap is not a moat. The P/E of 50.40 is paired with sales growth of 0.00% and profit growth of 0.00%. In the latest quarter, sales were ₹1 Cr and net profit was rounded off to ₹0 Cr. That means the earnings power behind the high P/E is extremely thin and perhaps unreliable. Industrial glass is a competitive, cyclical business, and these figures do not show a durable edge. The Piotroski F-Score of 4/9 raises further doubts about financial health. There is no dividend to compensate me for waiting, and the debt-equity figure is not available, so I cannot fully judge the balance sheet. In Graham's language, an investment must provide safety of principal and an adequate return. This provides neither. At ₹23.05, very close to the 52-week high of ₹24.14, the market seems optimistic, but optimism is not evidence. The fair score itself says insufficient data. I would rather pass and wait for a better price or clearer fundamentals. This is a speculation, not an investment.

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