Aryaman Capital (538716)

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

Key Financials

Strengths

• Reported ROE of 51.05% and ROCE of 31.72% show high return on a small equity base.
• Latest quarter profitable with ₹15 Cr sales and ₹6 Cr net profit, implying a 40% net margin.
• Price-to-earnings at 17.83 is not extreme if the profit decline proves temporary.
• Positive absolute profitability despite the recent downturn.

Concerns

• Sales growth is -35.13% and profit growth is -50.43%, indicating serious business deterioration.
• Piotroski F-Score of 3/9 points to weak financial health and rising distress signals.
• No dividend and no promoter holding disclosure reduce transparency and income support.
• At ₹167.55, the stock is roughly 78% below its 52-week high, yet still trades at 3.44 times book value—hardly a margin of safety.

AI Analysis

Let's judge Aryaman Capital as a piece of business, not a market quote. It is a small investment company with a market cap of ₹201 Cr, so any purchase must be made with trepidation. The reported ROE is eye-catching at 51.05% and ROCE is 31.72%, but these are on a book value of only ₹48.71. When I see sales down 35.13% and profits down 50.43%, I don't celebrate high ROE—I question how long it can last. The latest quarter shows ₹15 Cr of sales and ₹6 Cr of net profit, a 40% margin, but investment-company earnings are fickle. At ₹167.55, the P/E is 17.83 and the price-to-book is 3.44. For a business whose earnings have just been cut in half, that is not cheap. The Piotroski F-Score of 3/9 is a loud warning: the financial health is deteriorating. There is also zero dividend, so the minority shareholder receives no income while waiting. Promoter holding is not disclosed—something I dislike intensely in Indian markets. The stock has fallen roughly 78% from its 52-week high of ₹753.85, which tells me the market has already lost enthusiasm. Graham would insist on a margin of safety; at 3.44 times book with falling sales and weak fundamentals, I don't find one. This looks like a cyclical investment business, not a durable compounder. I need evidence that revenues have stabilised, that management can deploy capital profitably, and that the balance sheet remains sound. Without those, I'll watch from the sidelines.

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