Alphalogic Indu (543937)

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

Key Financials

Strengths

• ROCE of 19.62% indicates efficient use of capital.
• Latest quarter shows ₹25 Cr sales generating ₹3 Cr net profit, a strong margin.
• Profit grew 40.44% despite sales decline, suggesting improved operating efficiency.
• Piotroski F-Score of 6/9 points to acceptable fundamental health.

Concerns

• Sales growth is sharply negative at -36.94%, raising questions about demand sustainability.
• P/E of 41.48 leaves no margin of safety at the current price.
• Zero dividend means shareholder returns depend entirely on price appreciation.
• Insufficient data on book value, debt/equity, and promoter holding makes balance sheet risk unmeasurable.

AI Analysis

At ₹276.10, Alphalogic Indu tests my patience. A ₹290 crore market cap with a 41.48 P/E? Graham would ask for earnings stability and margin of safety. Instead I see sales down 36.94% while profit is up 40.44%. That divergence demands skepticism. Rising profit from shrinking revenue is often a sign of cost cuts, mix shift, or one-time gains, not a durable franchise. The latest quarter's ₹25 crore sales and ₹3 crore profit show margins are good, but one quarter is not a trend. ROCE of 19.62% is respectable, and a Piotroski score of 6/9 suggests the company isn't in financial distress. Yet I do not have book value, debt-to-equity, or promoter holding data. In India, promoter skin in the game matters, and its absence from my analysis prevents me from sleeping well. The PEG ratio of 1.03 looks reasonable only if 40% profit growth continues. But with sales contracting so sharply, I cannot assume that. The stock has risen from ₹91.10 to ₹276.10 in the 52-week range; this is not an undervalued idea. It is a momentum story with high expectations. No dividend means the shareholder is entirely dependent on price appreciation, which is the least reliable source of return. I would call this a turnaround candidate, not an established compounder. I need evidence that the sales decline is cyclical, not structural, before I commit capital. The wise move is to wait for a fuller picture and a cheaper price.

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