Ameenji Rubber (544555)

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

Key Financials

Strengths

• ROCE of 32.38% indicates strong capital efficiency
• Piotroski F-Score of 7/9 points to solid financial health
• P/E of 13.14 and PEG of 0.23 look undemanding if profit growth is sustainable
• Latest quarter profitable with ₹4 Cr net profit on ₹43 Cr sales, implying a healthy margin

Concerns

• Sales growth of only 8.46% lags far behind 103.72% profit growth, raising sustainability doubts
• No dividend means shareholders depend entirely on reinvestment for returns
• Critical data missing: book value, ROE, debt/equity, and promoter holding
• Small-cap with limited track record; one strong quarter is not enough to confirm a trend

AI Analysis

Looking at Ameenji Rubber, I am reminded that price is what you pay, value what you get. The market cap is ₹130 Cr and the P/E is 13.14, which initially appears reasonable. But I have learned to dig deeper. The business earns a ROCE of 32.38% - that is an impressive return on capital, and the Piotroski F-Score of 7 out of 9 suggests the financial position is solid. Profit growth of 103.72% is eye-popping, and with a PEG ratio of 0.23 the stock looks cheap if that growth can continue. But here is where I must pause. Sales growth is only 8.46%. When profits grow twelve times faster than sales, I wonder whether the jump is a one-time event, cost cutting, or maybe a low base effect. The latest quarter shows sales of ₹43 Cr and net profit of ₹4 Cr, so the margin appears healthy, but one quarter does not make a franchise. There is no dividend, so shareholders rely entirely on the business re-investing at high returns. I have no data on book value, ROE, debt levels, or promoter holding - and in a small-cap, transparency matters enormously. Without those pieces, I cannot apply my usual margin of safety. A P/E of 13.14 is not demanding, and the quality metrics are encouraging, but the lack of data plus modest top-line growth makes me cautious. I would need to see several more quarters of this profitability, evidence that the growth is sustainable, and a clearer picture of the balance sheet before I commit real money. In Graham's words, it is not enough to know the numbers are good; I must know what I am buying.

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