Aeron Composites (AERON)

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

Key Financials

Strengths

• ROCE of 21.19% indicates efficient capital use and a possible competitive edge.
• Piotroski F-Score of 7/9 suggests solid financial health with no obvious red flags.
• Promoter holding of 73.63% aligns management's interests with minority shareholders.
• P/E of 11.47 and positive growth provide a modest margin of safety.
• Sales and profit growth at 8.20% and 8.72% are steady, if not spectacular.

Concerns

• Book value, ROE and debt/equity are unavailable, so leverage and true equity returns cannot be assessed.
• No dividend means investors rely entirely on future growth and re-rating.
• PEG of 1.36 suggests the stock is fairly valued, not deeply undervalued.
• Single-digit growth leaves little room for error if economic conditions weaken.

AI Analysis

At ₹102.15, the market is valuing Aeron Composites at ₹160 Cr and just 11.47 times earnings. That first number catches my eye, but Graham taught me never to buy on price alone. I need returns on capital, a durable competitive position, and a balance sheet I can trust. The business clears some hurdles: ROCE is 21.19%, which is well above what most Indian industrials earn. The Piotroski score of 7 out of 9 also tells me the fundamentals are not quietly deteriorating. With promoter holding at 73.63%, the owner-operators have the same interest as public shareholders. Yet I must be honest about what I do not know. Book value, ROE and debt/equity are missing. That is troubling. A company can look profitable and still hide leverage. The fact that this screen has insufficient data means I cannot sign the cheque with conviction. Sales grew 8.20% and profit grew 8.72%. Those are steady single-digit numbers, not the explosive growth I need for a fast grower. The PEG ratio of 1.36 tells me the market has already put a fair price on that growth. There is no dividend, so a shareholder's return depends entirely on reinvestment and future re-rating. The latest quarter shows sales of ₹117 Cr and net profit of ₹7 Cr. I would need several more quarters to see whether this is a normal run rate or a one-off. At 11.47 times earnings, there is some margin of safety, but not a Graham-class bargain. I would classify this as a small stalwart only if the missing balance sheet data confirms low leverage and consistent returns. Until then, it is a watch-it-verify situation.

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