Ampvolts (535719)

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

Key Financials

Strengths

• Explosive recent growth: sales up 1620% and profit up 1000%, albeit from a small base.
• Latest quarter is profitable: ₹7 Cr sales and ₹2 Cr net profit.
• Piotroski F-Score of 6/9 indicates reasonable financial health on a multi-factor basis.
• PEG of 0.02 suggests the current earnings multiple is not expensive if the high growth persists.
• Small market cap of ₹111 Cr leaves room for future scaling in the power distribution space.

Concerns

• Valuation is not cheap: P/E of 24.35 and P/B of 3.84 against book value of ₹9.69, while ROE is only 9.47%.
• Negative ROCE of -0.95% suggests core capital is not yet earning an acceptable return.
• Reported growth is from a very small base, so triple-digit percentages are unlikely to be sustainable.
• Transparency gaps: promoter holding is N/A, debt/equity is N/A, and no dividend is paid.
• Wide 52-week range (₹15.00 - ₹47.40) indicates speculative volatility.

AI Analysis

At ₹37.17, Ampvolts is a small-cap puzzle. The ₹111 Cr market cap and 24.35 P/E look tolerable only because reported sales and profit grew by 1620% and 1000%. Graham, however, taught me that a one-year growth spike is an invitation to ask harder questions, not a reason to pay up. The latest quarter brings just ₹7 Cr of sales and ₹2 Cr of profit. Those are tiny absolute numbers. A business can grow from a microscopic base and still lack durability. Book value is ₹9.69, so at ₹37.17 I am paying 3.84 times book for a return on equity of only 9.47%. Worse, ROCE is -0.95%, suggesting the core operations are not yet earning their cost of capital. The F-score of 6/9 is mildly encouraging, but no dividend, no promoter holding data and no debt/equity figure leave important stones unturned. The PEG of 0.02 looks seductive, but it is built on explosive, perhaps unsustainable, growth; if growth normalises, the cheapness disappears. The 52-week range of ₹15 to ₹47.40 reminds me of Mr. Market’s mood swings. As Benjamin Graham wrote, in the short run the market is a voting machine; in the long run it is a weighing machine. For the Indian retail investor, the lesson is to avoid being hypnotised by percentage growth. Price matters. At this price, the margin of safety is missing. I would wait for more quarters of operationally sound growth, positive working capital evidence and visible competitive protection before committing. This may be a promising fast grower, but a valuable franchise is not yet proven.

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