Airo Lam (AIROLAM)

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

Key Financials

Strengths

• Sales growth of 26.63% and profit growth of 27.42% show strong recent momentum.
• PEG of 0.59, with P/E at 16.04, suggests the market is not pricing in runaway expectations.
• Piotroski F-Score of 7/9 indicates generally healthy financial fundamentals.
• Promoter holding of 53.41% aligns owner interests with minority shareholders.

Concerns

• ROCE of 7.78% is low for a business carrying debt-to-equity of 1.18.
• Latest quarter net profit of ₹2 Cr on sales of ₹70 Cr implies a thin margin of under 3%.
• No dividend yield means minority shareholders get no cash return while waiting.
• Trading near the lower end of its 52-week range (₹78-₹125) could reflect cyclical or earnings risk.

AI Analysis

When I look at Airo Lam, the first thing that catches my eye is growth. Sales are up 26.63% and profit is up 27.42%, while the stock trades at a P/E of 16.04. That gives a PEG of 0.59, which is cheap if the growth is durable. The Piotroski score of 7 out of 9 also tells me the recent numbers are not all window dressing. Promoters own 53.41%, so their interests are aligned with mine. But I do not buy every grower I meet. This is a plywood and laminates business, a competitive and capital-hungry trade. ROCE is only 7.78%, with debt-to-equity at 1.18. The latest quarter had ₹70 Cr of sales but just ₹2 Cr of net profit, a margin of less than 3%. That is thin, and any raw-material or pricing pressure can hurt. There is no dividend, so the shareholder return depends entirely on the company reinvesting profitably. Book value is ₹49.28 and the market price is ₹83.67, so I am paying 1.7 times book for an average return on capital. Not a screaming bargain, but not absurd if growth continues. I need to see whether management can turn this rising turnover into rising return on capital, not just higher rupee sales. In the end, I would put this in my watch basket: a fast grower at a reasonable multiple, but with a balance sheet and capital efficiency that need monitoring. If debt comes down and ROCE improves, the story becomes more comfortable. If growth slows, the 52-week range of ₹78 to ₹125 reminds me how volatile this stock can be. Graham would remind me that price is what you pay, value is what you get; at ₹83.67, I want more proof before calling it a value buy.

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