Alacrity Sec. (535916)
CyclicalScore breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹83.8 |
| Market Cap | ₹391.61 Cr |
| P/E Ratio | 41.77 |
| ROCE | 21.5% |
| ROE | 7.51% |
| Dividend Yield | 0% |
| Profit Growth | -69.43% |
| Debt/Equity | — |
| Sales Growth | -29.76% |
| 52-Week Range | ₹42.93 — ₹83.8 |
| Sector | Finance |
| Book Value | ₹18.99 |
Strengths
- ROCE of 21.50% suggests decent operational capital efficiency in the current business.
- Latest quarter revenue of ₹113 Cr shows a meaningful operating base.
- Net profit is still positive at ₹2 Cr in the latest quarter, avoiding a loss.
- Stock trading at its 52-week high indicates market interest, though not a fundamental moat.
Concerns
- P/E of 41.77 and P/B of 4.41 are expensive given ROE of only 7.51%.
- Sales and profits are shrinking sharply: -29.76% and -69.43% respectively.
- Piotroski F-score of 3/9 signals weak financial health.
- No dividend and a latest-quarter net margin of only about 1.8% leave little room for error.
AI Analysis
At ₹83.80, Alacrity Sec. is a small-cap financial stock that has already doubled off its 52-week low. Let me be blunt: price is not value. The trailing P/E of 41.77 means I am paying over ₹41 for every rupee of earnings. Book value is only ₹18.99, so the market price is 4.41 times book, yet the company generates just 7.51% return on that equity. That is not the kind of business franchise I want at a premium. ROCE of 21.50% sounds nice, but with a Piotroski F-score of 3/9, the underlying financial health is weak. Sales have fallen 29.76% and profits have collapsed 69.43%. The latest quarter shows ₹113 Cr of revenue but only ₹2 Cr of net profit—a razor-thin margin. There is no dividend to compensate while I wait. If earnings are only about ₹9.4 Cr on a market cap of ₹392 Cr, the multiple is steep for a business in decline. I cannot assess debt or promoter holding because the data is not available; in such cases, I assume the absence of transparency is a risk, not an advantage. This looks like a cyclical financial business enjoying a price recovery before any fundamental recovery is proven. Benjamin Graham taught me to buy with a margin of safety. At 41.77 times earnings, with falling profits and a 3/9 F-score, the safety is missing. I would keep it on the watch list and wait either for a much lower price or clear evidence that sales and profits are stabilizing. In investing, discipline matters more than excitement.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer