Alicon Cast. (ALICON)
CyclicalFairStock Score: 43/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹719.6 |
| Market Cap | ₹1,175.6 Cr |
| P/E Ratio | 34.25 |
| ROCE | 11.56% |
| ROE | 6.48% |
| Dividend Yield | 0.69% |
| Profit Growth | 23.4% |
| Debt/Equity | 0.56 |
| Sales Growth | 38.3% |
| Promoter Holding | 54.01% |
| 52-Week Range | ₹580 — ₹1,022 |
| Sector | Auto Components |
| Book Value | ₹384.59 |
Strengths
- Promoter holding of 54.01% shows strong insider alignment.
- Piotroski F-Score of 7/9 suggests solid recent financial health.
- Debt-to-equity of 0.57 is manageable for an auto ancillary business.
- Sales growth of 9.69% is steady, and ROCE of 11.56% is positive.
Concerns
- Latest quarter net profit of ₹3 Cr on sales of ₹430 Cr is an extremely thin margin.
- P/E of 32.26 and P/B of 2.08 look expensive against an ROE of just 6.48%.
- Profit growth of 394.87% is likely distorted by a low base and not sustainable.
- Dividend yield of 0.73% offers limited downside support for shareholders.
AI Analysis
Alicon Cast is the kind of business that reminds me why patience matters. Castings are a competitive, cyclical corner of auto components. The company has grown sales at 9.69% and carries a debt-to-equity of 0.57, which is manageable. Promoters own 54.01%, so skin in the game is there. The Piotroski score of 7 out of 9 suggests recent improvements in the balance sheet, and ROCE of 11.56% is respectable but not exceptional. But here's where I pause. The reported profit growth of 394.87% is a mirage; the latest quarter earned just ₹3 Cr on ₹430 Cr of sales. That is less than a 1% net margin. At ₹697.90, the P/E is 32.26 and price-to-book is 2.08 against a book value of ₹335.18. For a business earning 6.48% on equity, that is no margin of safety. A 2% book multiple and 32 times earnings should be reserved for extraordinary companies with durable moats. I don't see that in commodity-like castings. The 52-week range of ₹580 to ₹1,022 tells me the market itself is unsure. The dividend yield of 0.73% offers little comfort. I would rather wait for a much lower price, or for evidence that margins can sustain above historical levels. If the business can compound sales at 10% and improve return on equity, my interest grows. Until then, I watch, and I keep my cash.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer