Associated Cera. (531168)

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

Key Financials

Strengths

• Book value of ₹106.67 provides a tangible asset base; P/B of 2.57, while not cheap, is not extreme for a going concern.
• Historical ROE of 11.01% and ROCE of 10.78% show the business can generate moderate returns when operating conditions are normal.
• Market cap of ₹57 Cr is small, leaving room for niche growth if the business revives.
• P/E of 15.58 is modest if the recent earnings collapse proves temporary.

Concerns

• Sales are down 22.25% and profit growth is -106.06%, with latest quarterly net profit effectively zero.
• Piotroski F-Score of 3/9 signals weak financial health and deteriorating fundamentals.
• No dividend means shareholders get no income while waiting for a recovery.
• Debt/equity and promoter holding are unavailable, so financial risk and insider alignment cannot be assessed.

AI Analysis

At ₹274.40, this is a ₹57 Cr micro-cap in a cyclical construction-materials niche. Ben Graham taught me to buy a dollar for 60 cents; here, I am being asked to pay ₹2.57 for every ₹1 of book value. Book value is ₹106.67, ROE is 11.01%, and ROCE is 10.78% – respectable at the peak, but last quarter sales were only ₹7 Cr and net profit was roughly nil. Sales have contracted 22.25%, and profit growth has swung to -106.06%. This is not a stable earner. The P/E of 15.58 looks lagging and close to meaningless when current earning power appears near zero. The Piotroski F-Score of 3/9 further suggests deteriorating financial health. There is no dividend to compensate me while I wait. The 52-week range – from ₹140 to ₹274.40 – tells me Mr. Market is in an optimistic mood today. As a value investor, I avoid paying a premium for a business whose fundamentals are moving in the wrong direction. Construction materials is a cyclical, competitive industry; I see no evidence of a wide moat, pricing power, or brand strength. Without debt/equity and promoter holding data, I cannot judge balance-sheet comfort or insider alignment. For a margin of safety, I need stronger earnings, evidence of a sales recovery, and a price closer to or below book value. Until then, this remains a speculative cyclical, not a compounding machine. I will watch, not buy.

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