Aztec Fluids (544177)

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

Key Financials

Strengths

• Sales growth of 11% shows the business is still expanding its top line.
• ROCE of 22.30% suggests decent capital efficiency relative to many small-caps.
• Latest quarter sales of ₹42 Cr and net profit of ₹4 Cr show the business is generating meaningful operating activity.
• A small 0.52% dividend provides at least some token cash return to shareholders.

Concerns

• Profit growth declined 18.20% even as sales grew 11%, pointing to margin pressure.
• Piotroski F-Score of 4/9 is weak and suggests deteriorating financial health.
• P/E of 19.88 and PEG of 1.81 make the stock not obviously cheap despite falling earnings.
• Book value, promoter holding, and debt data are unavailable, limiting any margin-of-safety analysis.

AI Analysis

Let me start with what I know: Aztec Fluids is a small computer hardware and equipment business, market cap only ₹127 crore. At ₹92, the stock trades at 19.88 times trailing earnings. That is not a bargain for a company whose profits fell 18.20% last year, even though sales grew 11%. In Graham's language, you pay for growth only when growth is dependable; here the opposite is happening—top line moves up, bottom line moves down. That tells me margins are under pressure, and with a Piotroski F-score of 4 out of 9, the financial health score is mediocre. The quarterly numbers offer a bright spot: sales of ₹42 crore and net profit of ₹4 crore in the latest quarter. If that quarterly profit continues, the shares would look cheaper than the trailing P/E suggests. But one quarter is not a trend, and I don't buy a story on a single snapshot. ROCE of 22.30% shows management has historically put capital to decent use, and the tiny 0.52% dividend is a token, not an income stream. I have no meaningful promoter-holding or book-value data, so I cannot assess insider alignment or asset protection. The 52-week range tells me the market has already repriced this from ₹128 to ₹92, but cheapness relative to its own past is not the same as intrinsic value. In Buffett's terms, this is a decent small business without a wide moat, in a competitive hardware sector where technology shifts can make inventory and products obsolete. Unless profitability stabilizes and the profit decline reverses, I would keep this on the watch list, not in the portfolio. The character of the business is more important than the price, and right now the character is not proven.

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