ABM Knowledge (531161)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Let me begin with the balance sheet. ABM Knowledge has a book value of ₹107.37 per share and the stock trades at ₹151.25, so I am paying 1.41 times book. That sounds reasonable until I look at returns. The company earned only 6.22% on equity and 9.55% on capital. As Graham would say, a good business should generate far more on its tangible assets than this. Sales grew 8.85%, but profits collapsed by 45.30%. The latest quarter shows ₹31 Cr in revenue and just ₹3 Cr in net profit. That tells me the top line is still alive, but the earnings engine is badly damaged. At ₹306 Cr market cap, the market is paying 39.06 times earnings for a business whose ROE is below what I can get from an index fund over time. The Piotroski score of 4 out of 9 reinforces my unease. The PEG of 4.41 promises growth at a very high price, but the profit trend points the other way. The stock has fallen from a 52-week high of ₹325 to ₹151.25, below the reported 52-week low of ₹160, and the dividend yield is only 0.56%. Mr. Market is already disappointed. I cannot call this a wonderful company at a wonderful price. A potential turnaround would require margins to recover and capital returns to move toward double digits. Until I see evidence of that, I prefer to sit on the sidelines. Price is what you pay; value is what you get. Right now, I am not convinced the value is here.

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