Alliance Integ. (534064)

FairStock Score: 1/100 — RISKY

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

Key Financials

Strengths

• Sales grew 13.15%, showing some revenue traction despite the adverse profit trend.
• Latest quarterly sales of ₹22 Cr provide an operating base, however small.
• Reported ROE of 38.58% is high on the surface, but it is contradicted by the latest loss and must not be taken at face value.
• The stock's 52-week range shows intense market interest, but that is a trading fact, not an investment merit.

Concerns

• Latest quarter recorded a net loss of ₹24 Cr against sales of just ₹22 Cr — it is destroying capital at the operating level.
• ROCE is deeply negative at -24.67%, and the Piotroski F-Score of 3/9 indicates weak financial health.
• Valuation is detached from fundamentals: market cap of ₹1,025 Cr on annualized sales of roughly ₹88 Cr and no earnings.
• Zero dividend and a ~20x jump from ₹1.30 to ₹25.96 in 52 weeks suggest a speculative run, not a Graham-style value opportunity.

AI Analysis

Even at a distance, this is the kind of security I would walk past. Alliance Integ. trades at ₹25.96, giving a market capitalisation of ₹1,025 Cr, yet its latest quarter shows sales of only ₹22 Cr and a net loss of ₹24 Cr. That means the company lost more money in three months than it collected as revenue. The P/E is meaningless because earnings are negative; the reported ROE of 38.58% cannot be reconciled with a -₹24 Cr quarterly loss and should not be trusted. ROCE is -24.67%, and the Piotroski F-Score is 3/9, telling me the balance sheet and operating position are deteriorating, not improving. Sales growth of 13.15% sounds pleasant, but profit growth is -23.70%. In a commodity business like iron and steel, there is no meaningful moat; pricing is set by the market, not by the company. Without pricing power, a so-called growing topline is worthless if it produces losses. Dividend yield is 0.00%, so I get no income while waiting. The stock has moved from ₹1.30 to ₹25.96 in 52 weeks, a nearly 20-fold jump; that is more a story of speculation than sound value creation. I cannot compute book value, debt/equity, or promoter holding because they are not available. As Graham said, investing is most intelligent when it is most businesslike. This business earns negative returns on capital, fails basic quality tests, and is priced for perfection. There is no margin of safety. I need to see consistent profits, positive retained earnings, and a sane price relative to earnings before I would spend even a minute on this. Price is what you pay; value is what you get. Here, I see a price, but no evidence of value.

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