AksharChem (I) (AKSHARCHEM)
Asset PlayScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹305.64 |
| Market Cap | ₹245.52 Cr |
| P/E Ratio | 0 |
| ROCE | 3.46% |
| ROE | -1.49% |
| Dividend Yield | 0.25% |
| Profit Growth | 999% |
| Debt/Equity | 0.41 |
| Sales Growth | 45.23% |
| Promoter Holding | 62.7% |
| 52-Week Range | ₹141.3 — ₹471.65 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹325.63 |
Strengths
- Trading at 0.61x book value, market cap ₹174 Cr vs book value ₹331.66 per share
- Low debt-to-equity of 0.28
- Promoter holding strong at 62.70%
- ROCE positive at 3.46% despite current losses
Concerns
- Latest quarter net loss of ₹5 Cr on ₹80 Cr sales; ROE negative at -1.49%
- Profit growth down -488.24% and sales declining -11.37%
- Piotroski F-Score of 3/9 indicates weak financial health
- Dividend yield negligible at 0.35%, with earnings unable to support payouts
AI Analysis
At ₹202.25, AksharChem is selling at barely 0.61 times its book value of ₹331.66 per share. On the surface, that looks like the kind of margin of safety Graham taught us to seek. But a low price-to-book is only meaningful if the underlying capital can eventually earn a decent return. Right now, it is not. The latest quarter shows ₹80 crore in sales and a net loss of ₹5 crore. ROE is negative at -1.49%, and profit growth has collapsed by -488.24%. Sales are shrinking too, down -11.37%. This is a cyclical, commodity-like dyes and pigments business, and I see no durable moat protecting AksharChem from competition or input price swings. The balance sheet is not terrible: debt-to-equity is only 0.28, and ROCE, while weak at 3.46%, is still positive. Promoter holding of 62.70% is reassuring. However, the Piotroski F-Score of 3/9 tells me the financial health is weak. The dividend yield is negligible at 0.35%. We are essentially buying a rupee of book for 61 paise, but that rupee is not currently working for shareholders. If losses persist, book value will erode and the apparent discount will shrink from the inside. I would not call this a compounder or a stalwart. It is an asset play with cyclical exposure, requiring a visible turnaround before value investors can get excited. As Graham said, price is what you pay, value is what you get; here the price is low, but the value depends on management's ability to restore profitability. I would wait for evidence of improving sales and positive earnings before committing capital.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer