Airan (AIRAN)
TurnaroundScore breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹15.26 |
| Market Cap | ₹190.78 Cr |
| P/E Ratio | 16.41 |
| ROCE | 10.9% |
| ROE | 5.36% |
| Dividend Yield | 0% |
| Profit Growth | 108% |
| Debt/Equity | 0.01 |
| Sales Growth | 27.4% |
| Promoter Holding | 72.21% |
| 52-Week Range | ₹12.63 — ₹27.49 |
| Sector | IT - Services |
| Book Value | ₹10.73 |
Strengths
- Debt-to-equity of 0.01 indicates a virtually debt-free balance sheet.
- Promoter holding of 72.21% ensures strong owner alignment.
- Piotroski F-Score of 7/9 suggests improving fundamentals.
- Latest quarter sales of ₹29 Cr and net profit of ₹8 Cr demonstrate recent operating momentum.
Concerns
- ROE of 5.36% and ROCE of 10.90% signal mediocre returns on capital.
- Profit growth of 336.28% vs sales growth of 9.33% is a red flag; likely a low-base or one-off effect.
- Trailing P/E of 23.82, with no dividend, leaves little margin of safety for a small-cap IT services firm.
- Latest quarter net profit of ₹8 Cr is nearly equal to implied trailing earnings of ~₹8.6 Cr, making earnings sustainability questionable.
AI Analysis
What do I really get if I buy Airan today? A small IT-enabled services business with a market cap of ₹205 Cr, a clean balance sheet, and a promoter who owns 72.21%. That is reassuring. The Piotroski score of 7/9 also points to improving financial health, and debt to equity of 0.01 means the company is not dependent on lenders. But the economics of the business are only average. Return on equity is 5.36%, and ROCE is 10.90%; those numbers do not describe a franchise with a durable moat. Sales grew only 9.33%, yet profit grew 336.28%. A gap that wide is not something I celebrate. It usually means the base was depressed or there was a non-recurring item. The latest quarter makes me even more cautious: net profit of ₹8 Cr is almost equal to the roughly ₹8.6 Cr of trailing earnings implied by a P/E of 23.82. That means all the earnings power is concentrated in one quarter. That is not steady, predictable earning power. At ₹17.30, the stock trades at 23.82 times earnings and 1.64 times book. For a company earning just 5.36% on equity and paying no dividend, I need a meaningful margin of safety. The PEG ratio of 0.14 is eye-catching, but it only looks cheap if you believe 336% profit growth is sustainable. I do not. This may be an improving company, and I will keep watching it, but the price is ahead of proven, repeatable performance. I would rather wait.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer