Amic Forging (544037)

FairStock Score: 6/100 — RISKY

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

Key Financials

Strengths

• ROCE of 27.89% indicates efficient use of capital employed.
• Latest quarter net profit of ₹12 Cr on sales of ₹67 Cr implies a solid quarterly margin near 17.9%.
• Sales growth remains positive at 4.57% despite the sharp profit decline.
• Current price is about 34% below the 52-week high, offering a lower entry point than recent buyers received.

Concerns

• Trailing P/E of 60.38 and PEG of 13.21 are expensive given falling profits.
• Annual profit growth declined 45.42% while sales grew only 4.57%, showing significant margin compression.
• Piotroski F-score of 4/9 and FairStock's 6/100 risky rating point to deteriorating financial health.
• No dividend yield means investors must rely entirely on price appreciation for returns.

AI Analysis

At ₹1,199.40, Amic Forging trades at 60.38 times earnings. That is not a price Benjamin Graham would call a bargain. The company did earn a strong 27.89% ROCE, and the latest quarter shows ₹67 Cr of sales with ₹12 Cr of net profit, a margin of about 17.9%. Those are encouraging operational signs. But a single quarter is not enough for me to change my view. Annual profit growth has fallen 45.42%, while sales growth is only 4.57%. With a PEG of 13.21, the market is paying an extraordinary premium for very little growth. The Piotroski F-score of 4/9 and the FairStock score of 6/100, labelled risky, reinforce my caution. There is no dividend, so the investor depends entirely on capital gains. In castings and forgings, earnings move with industrial cycles. When profits collapse, a high P/E can be a sign of a cyclical company at its low point, not a quality compounder. The stock is about 34% below its 52-week high of ₹1,819.95, but it is still expensive on trailing earnings. I would want to see several quarters of rising profit, stable sales growth, and a meaningful margin of safety before buying. I cannot calculate book value or return on equity because those figures are not available, and that makes a proper Graham analysis impossible. My rule is to be fearful when others are greedy, and greedy only when the numbers support a comfortable margin of safety. Today, the numbers do not support that. I will wait on the sidelines.

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