Akums Drugs (AKUMS)
Fast GrowerFairStock Score: 70/100 — STEADY
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹726.6 |
| Market Cap | ₹11,124.4 Cr |
| P/E Ratio | 38.16 |
| ROCE | 16.2% |
| ROE | 10.44% |
| Dividend Yield | 0.14% |
| Profit Growth | 57.3% |
| Debt/Equity | 0.06 |
| Sales Growth | 13.9% |
| Free Cash Flow | ₹-82.64 Cr |
| Promoter Holding | 75.26% |
| 52-Week Range | ₹409.3 — ₹796.2 |
| Sector | Pharmaceuticals & Biotechnology |
| Book Value | ₹216.41 |
Strengths
- Clean balance sheet with debt/equity of 0.03 and Altman Z-Score of 3.27.
- Piotroski F-Score of 8/9 indicates strong recent fundamental quality.
- Promoter holding of 75.26% provides strong owner alignment.
- Reported profit growth of 113.21% and ROCE of 16.20% show improving operational efficiency.
Concerns
- Sales growth is only 6.24%, so profit growth relies on margin expansion or a low base rather than strong demand growth.
- Free cash flow is negative ₹83 Cr; reported profits are not converting into cash.
- Zero dividend yield and P/E of 23.68 make the investor depend entirely on future capital appreciation.
- Price of ₹539.20 is about 30% above the Graham Number of ₹374.22, leaving no margin of safety.
AI Analysis
At ₹539.20, Akums is priced as if the good times are certain. Graham's defensive number is only ₹374.22, so I see no margin of safety: I am paying 30% above that number. I like the balance sheet: debt-equity is 0.03, Altman Z-Score is 3.27, and Piotroski F-Score is 8/9. Promoters own 75.26%, so their interests are aligned with mine. ROCE of 16.20% is decent, but ROE of 10.44% is merely average, and sales growth of 6.24% does not scream pricing power or a deep moat. The 113.21% profit growth looks wonderful on the surface, yet a profit jump without a matching revenue jump usually means margin expansion, cost cuts, or a low base—none of which compounds forever. The latest quarter supports the arithmetic: ₹1,160 Cr of sales produced ₹68 Cr of profit. But free cash flow is minus ₹83 Cr. I cannot value a business solely on accrual earnings when cash is not following. A zero dividend yield and a P/E of 23.68 force me to rely on future growth for my return. The negative EV/EBITDA tells me to dig into the cash and EBITDA composition; I would not ignore it. This may be a steady operator, but steady is not synonymous with cheap. I respect the clean capital structure and the improving score, but my discipline says pay for growth only when growth is visible in both revenue and cash. Today, Akums offers no margin of safety, so I would keep it on my watchlist rather than buy.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer