Alacrity Sec. (535916)

Cyclical

Score 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 Ratio41.77
ROCE21.5%
ROE7.51%
Dividend Yield0%
Profit Growth-69.43%
Debt/Equity
Sales Growth-29.76%
52-Week Range₹42.93 — ₹83.8
SectorFinance
Book Value₹18.99

Strengths

Concerns

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