Adtech Systems (544185)
CyclicalScore breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹163.6 |
| Market Cap | ₹194.91 Cr |
| P/E Ratio | 16.23 |
| ROCE | 12.92% |
| ROE | 7.47% |
| Dividend Yield | 1.93% |
| Profit Growth | -60.32% |
| Debt/Equity | — |
| Sales Growth | -30.32% |
| 52-Week Range | ₹47 — ₹163.6 |
| Sector | Industrial Manufacturing |
| Book Value | ₹43.62 |
Strengths
- ROCE of 12.92% suggests reasonable operational capital efficiency despite weak ROE.
- Latest quarter remains profitable with ₹1 Cr net profit on ₹8 Cr sales.
- Dividend yield of 1.93% offers modest cash return to shareholders.
- P/E of 16.23 looks moderate, though earnings are falling.
Concerns
- Sales down 30.32% and profit down 60.32% indicate severe business deterioration.
- Piotroski F-Score of 3/9 points to weak financial health.
- Price-to-book of 3.75 is high relative to 7.47% ROE, leaving no margin of safety.
- Debt/equity and promoter holding data are unavailable, creating transparency risk.
AI Analysis
When I look at Adtech Systems, I first ask: is this a business I understand, and can I judge its economics? It is an industrial products company, so yes, but the numbers leave me uncomfortable. Sales are down 30.32% and profits down 60.32%. A business that earns less every year needs a deep moat or a very low price. Here I see neither. The stock trades at ₹163.60, the top of its 52-week range, with a market cap of ₹195 Cr and a P/E of 16.23. But the company earns only 7.47% on equity, and the price-to-book is 3.75. Graham would tell me that paying nearly four times book for a 7.47% ROE is no bargain. The Piotroski F-Score of 3/9 reinforces my caution: financial health appears weak. The latest quarter is profitable, ₹8 Cr sales and ₹1 Cr net profit, but that is a tiny cushion, and one quarter does not make a turnaround. ROCE of 12.92% is decent, but not exceptional. Dividend yield of 1.93% provides some comfort, but not enough to offset collapsing earnings. There is no debt/equity data, and promoter holding is not disclosed, so I cannot properly assess governance or leverage risk. This looks like a cyclical industrial business facing a sharp downturn. The market may be hoping for a recovery, but hope is not an investment strategy. I would wait for sales to stabilise, profits to recover, and the price to offer a margin of safety. Until then, I stay on the sidelines.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer