Associated Coat. (544183)

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

Key Financials

Strengths

• ROCE of 32.62% indicating efficient capital deployment
• Sales growth of 40.27% and profit growth of 20% showing expansion
• Piotroski F-Score of 7/9 suggesting healthy financial fundamentals
• Attractive valuation with P/E of 12.72 and PEG of 0.42

Concerns

• Latest quarter net profit is essentially ₹0 crore despite ₹3 crore sales
• Microcap with ₹15 crore market cap, prone to volatility and liquidity issues
• No dividend yield and no promoter holding or debt data disclosed
• Limited financial transparency with book value and balance sheet details unavailable

AI Analysis

Looking at Associated Coatings, I see a tiny company doing some very interesting things, but I also see clouds that prevent me from being greedy. The market cap is just ₹15 crore, so this is a microcap in every sense. A P/E of 12.72 and a PEG of 0.42 suggest the market is not paying a premium for its growth, and with sales up 40.27% and profits up 20%, the business appears to be compounding. A ROCE of 32.62% is the kind of number that would make Graham nod—it tells me the company is generating strong returns on the capital it employs, which is often a sign of a real business advantage, not just a cyclical bounce. The Piotroski F-Score of 7 out of 9 also points to improving fundamentals and solid operational health. But I have to be honest: the latest quarter shows sales of only ₹3 crore and net profit of essentially ₹0 crore. That is a warning flag. A business growing 40% should not be earning nothing in its latest quarter, and I need to know whether this is seasonality, an expense spike, or a deterioration in pricing power. I also have no clarity on debt, book value, or promoter holding. Without those, I cannot judge financial risk or alignment with minority shareholders. There is no dividend, so my return depends entirely on future earnings growth and the price someone else pays me later. That is fine for a small position, but not for a widows-and-orphans holding. I would keep this on a watchlist, not in the core portfolio.

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