Altius Telecom (543225)

FairStock Score: 24/100 — RISKY

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

Key Financials

Strengths

• Profit grew 36.59% even with nearly flat sales, indicating operating leverage or margin improvement
• Piotroski F-Score of 7/9 suggests reasonably healthy financials relative to fundamentals
• Dividend yield of 7.33% provides a meaningful income cushion for investors
• Large market cap of ₹49,679 Cr reflects an established, significant telecom infrastructure player
• Latest quarter net profit of ₹290 Cr shows a decent current earnings base

Concerns

• P/E of 50.07 is expensive, especially with sales growth of only 0.33%
• ROCE of 8.17% is modest and suggests weak capital efficiency for a capital-intensive business
• PEG of 1.82 indicates the market has already priced in much of the recent earnings growth
• FairStock Score of 24/100 flags the stock as risky, while missing debt, book value and promoter data limits deeper analysis

AI Analysis

Let me examine Altius Telecom the way I would examine any business. First, can I understand the economics? It is a telecom infrastructure operator with quarterly sales of ₹6,034 Cr and net profit of ₹290 Cr. Trailing earnings are roughly ₹992 Cr, so at ₹162 the market asks me to pay ₹49,679 Cr, or about 50 times earnings. That is a rich price for a business whose sales grew only 0.33%. I like the 36.59% profit growth, but with a PEG of 1.82, the stock is not cheap even if that growth continues. More troubling, ROCE is just 8.17%. A business earning such a modest return on capital must work hard to create value, and at 50 times earnings, the market is assuming far better economics than the numbers show. The Piotroski F-Score of 7/9 suggests recent financial health has improved, and a 7.33% dividend yield is attractive. But I cannot ignore the FairStock Score of 24/100, which labels the stock risky. The absence of book value, debt/equity and promoter holding figures makes it impossible to assess the margin of safety fully. A high dividend yield combined with a 50 P/E and stagnant revenue often signals that the payout may not be backed by durable growth. In Graham's spirit, I should not pay a wonderful price for a mediocre business. Here I see a slow-growing infrastructure company with modest capital returns, quoted at a premium. I would wait for a lower price, stronger revenue growth, or evidence that returns on capital are rising before acting.

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