Abram Food (544422)

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

Key Financials

Strengths

• Sales growth of 32.04% shows strong demand momentum.
• ROCE of 37.95% indicates efficient use of capital.
• Latest quarter sales of ₹56 Cr against a ₹49 Cr market cap gives a low revenue multiple.
• P/E of 16 and PEG of 0.50 could appear reasonable if profit growth recovers.

Concerns

• Profit growth is negative at -10.26% despite strong sales growth, signalling margin pressure.
• Piotroski F-Score of 4/9 suggests weak overall financial health.
• No dividend means investors get no cash return while waiting for growth.
• Critical data such as book value, debt/equity, and promoter holding are missing; FairStock Score is insufficient.

AI Analysis

At ₹95, Abram Food has a market capitalisation of just ₹49 crore. That is small enough to be ignored by most professional investors, and Graham would insist I know exactly what I am buying. The top line is growing nicely—sales are up 32.04%—and the latest quarter shows ₹56 crore in sales. But profit growth is minus 10.26%, and the quarterly net profit of ₹2 crore is thin. The reported P/E of 16 implies trailing earnings of only ₹3 crore, which makes me wonder whether the latest quarter is normal or exceptional. Return on capital employed is 37.95%, which is genuinely attractive; it suggests the business uses money well. But the Piotroski F-score of 4 out of 9 warns that the financial health is not improving. There is no dividend, so I cannot get paid while I wait. The PEG of 0.50 looks tempting, but it contradicts the actual profit decline. Book value, debt, and promoter holding are all missing. In Graham's language, this is not a margin of safety; it is a margin of ignorance. A small, cheap-looking food company with high sales growth and poor profit conversion is interesting, but not yet an investment. I want to see the 32% sales growth turn into profit growth before I commit. Until then, Abram Food goes into the 'too hard' pile: strong operating metrics, unresolved financial signals, and too little data to value it with confidence.

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