Ashapuri Gold (542579)

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

Key Financials

Strengths

• Profit grew 7.74% even while sales fell 10.06%, showing margin discipline
• ROE of 12.65% and ROCE of 13.78% are decent for a small-cap jeweller
• P/E of 9.12 and P/B of 1.66 are modest against book value of ₹4.56
• Latest quarter net profit of ₹6 Cr on sales of ₹91 Cr indicates improved quarterly margins
• Piotroski F-score of 6/9 suggests acceptable financial health

Concerns

• Revenue decline of 10.06% points to weak top-line demand
• Zero dividend yield means shareholders get no cash return while waiting
• Promoter holding and Debt/Equity are not disclosed, creating transparency concerns
• Stock trades at the top of its 52-week range, having doubled from ₹3.13, limiting margin of safety

AI Analysis

At ₹7.59, Ashapuri Gold is a small jewellery player with a market cap of ₹253 Cr. The trailing P/E of 9.12 is not demanding, and the P/B of 1.66 against book value of ₹4.56 suggests I'm not paying a rich price. But cheap can be a trap if earnings are eroding. Here, sales fell by about 10%, yet profit rose by 7.74% — that's the kind of divergence that makes me want to dig into sustainability. Is it cost-cutting, better product mix, or a one-off? The latest quarter shows ₹91 Cr sales and ₹6 Cr net profit, so the margin is roughly 6.6%, better than the annual picture. ROE is 12.65% and ROCE is 13.78%, respectable but not extraordinary. No dividend means I get no cash while waiting; for a slow grower, that lowers my margin of safety. The Piotroski F-score of 6/9 is okay but not a clean bill of health. Debt/Equity is not available, and promoter holding is also not disclosed — in a sector built on trust, that's a problem for me. The stock has doubled from its 52-week low of ₹3.13 to ₹7.59, so I'm not sure the easy money hasn't already been made. I would call this a slow grower: modest profitability, cheap valuation, but declining sales and a lack of full disclosure. I need to see sales growth return, stable margins, and better transparency before treating this as a serious Buffett-style holding. For now, it's not a compounder I can count on.

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