Aryavan Enterprise (539455)

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

Key Financials

Strengths

• Reported ROE of 72.32% and profit growth of 254% show strong recent momentum
• Trailing P/E of 14.38 and PEG of 0.11 are optically cheap if earnings can be sustained
• Latest quarter net margin of 10% (₹1 Cr profit on ₹10 Cr sales) is respectable for a steel products business
• Piotroski F-Score of 6/9 points to moderately sound financials

Concerns

• ROCE of 0.00% contradicts the high ROE and raises serious data or capital-allocation questions
• P/B of 7.82 means paying ₹42.79 for book value of ₹5.47, leaving a thin margin of safety
• Promoter holding and debt/equity are N/A, making governance and leverage impossible to assess
• Iron and steel is cyclical; 254% profit growth may reflect a cyclical peak rather than durable compounding

AI Analysis

At ₹42.79, Aryavan is a tiny ₹26 crore iron-and-steel player. When I see a commodity business, I immediately ask whether the reported earnings represent permanent earning power or the top of a cycle. The trailing P/E of 14.38 and PEG of 0.11 look attractive, and profit growth of 254% catches the eye, but I cannot treat that growth as durable. Latest quarter sales are ₹10 crore with ₹1 crore net profit, a 10% margin; that is decent, but sales growth of just 11.52% tells me the underlying business is not expanding explosively. ROE of 72.32% is spectacular, yet with a book value of ₹5.47 and a price of ₹42.79, I am paying 7.82 times book for that return. The zero ROCE is a serious red flag: either the data is incomplete or capital is not being employed effectively. Debt-equity and promoter holding are N/A, so I cannot form a view on leverage or owner alignment. In a small steel company, transparency is essential; without it, I pass. The dividend yield is only 0.94%, so I get no meaningful income while waiting. The 52-week range, ₹34.51 to ₹63.70, shows how volatile this stock can be. The Piotroski score of 6/9 suggests acceptable financial health, but not a clean bill. A true value investor demands a margin of safety; here, price-to-book of 7.82 leaves little room for error. I would want to see several years of steady cash flow, an honest explanation of ROCE, and full promoter holdings before treating this as an investment. For now, this is a cyclical small-cap, not a compounding machine with a moat. The price provides no margin of safety.

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