Aequs (AEQUS)
TurnaroundFairStock Score: 13/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹249.64 |
| Market Cap | ₹16,347.78 Cr |
| P/E Ratio | 0 |
| ROCE | 1.11% |
| ROE | —% |
| Dividend Yield | 0% |
| Profit Growth | 17.87% |
| Debt/Equity | 0.47 |
| Sales Growth | 54.8% |
| Promoter Holding | 59.08% |
| 52-Week Range | ₹113.3 — ₹274.6 |
| Sector | Aerospace & Defense |
| Book Value | ₹24.63 |
Strengths
- Sales growth of 50.77% demonstrates strong revenue momentum.
- Promoter holding of 59.08% aligns promoter interests with minority shareholders.
- Piotroski F-Score of 7/9 points to respectable operational discipline despite the loss.
- Aerospace & defense is a high-barrier industry, providing a potential structural moat if returns improve.
Concerns
- Latest quarter shows a net loss of ₹43 Cr; P/E is 0.00, so there is no earnings multiple to anchor valuation.
- P/B of 13.87 against ROCE of 1.11% means investors pay a huge premium for very poor return on capital.
- Debt/Equity of 1.08 and zero dividend yield make the balance sheet and shareholder returns unattractive.
- FairStock Score of 12/100 (RISKY) and price still well above the 52-week low offer no margin of safety.
AI Analysis
Let me start with Graham's first rule: don't lose money. At ₹184.55, Aequs carries a market cap of ₹9,491 crore. What do I actually own? The latest quarter produced ₹326 crore of sales but a net loss of ₹43 crore. The P/E is 0.00 because there are no positive earnings to justify a multiple. Book value stands at only ₹13.31 per share, so I am paying 13.87 times book for a business that earns just 1.11% on capital employed. That is not an investment; it is hope. The optimistic case is visible: sales growth of 50.77% is striking, and promoter holding of 59.08% aligns owner and minority interests. A Piotroski F-Score of 7/9 suggests decent discipline in operations. Aerospace and defense has genuine barriers to entry, but those barriers have not yet shown up in economics. With debt at 1.08 times equity, no dividend, and a FairStock Score of 12/100 labeled RISKY, the downside protection is thin. The reported 17.87% profit growth is cold comfort when the latest quarter is a loss. The 52-week range—₹113.30 to ₹274.60—shows how emotional Mr. Market has been. At ₹184.55 I am not getting a bargain. I cannot value a business that does not earn money. If this is a turnaround, the company must prove that 50% sales growth can turn into sustainable profits and a ROCE far above 1%. Until then, this remains a story stock, not a Graham stock. My seat is on the sidelines.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer