Allcargo Logist. (ALLCARGO)

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

Key Financials

Strengths

• Revenue base remains meaningful at ₹516 Cr in the latest quarter, with sales decline limited to -0.58%
• Debt/Equity of 0.58 is manageable and not highly leveraged
• Promoter holding of 40.49% provides some alignment with minority shareholders
• P/B of 1.18 and book value of ₹7.89 offer limited asset support near current price
• Declared dividend yield of 13.03% is optically attractive, though sustainability is questionable

Concerns

• Profit growth is -150% and latest quarter net profit is ₹0 Cr, making the P/E of 90.09 unreliable
• ROE of 0.49% and ROCE of 3.84% show severely weak capital efficiency
• Piotroski F-Score of 3/9 indicates poor financial health across multiple fundamental measures
• High dividend yield may be unsustainable if earnings remain near zero, creating value-trap risk

AI Analysis

At ₹9.30, Allcargo’s market cap is ₹1,264 crore. A P/E of 90.09 immediately tells me earnings are almost nonexistent. With profit growth at -150% and latest quarter net profit of ₹0 crore, there is no earnings power to justify a multiple. Graham would ask: what am I really buying? The balance sheet gives some support: book value ₹7.89, so P/B is 1.18. That is not a screaming bargain, especially when ROCE is only 3.84% and ROE is just 0.49%. I could earn more in a bank fixed deposit with less risk. The 13.03% dividend yield looks tempting, but when net profit is near zero, that yield is probably not sustainable. A company cannot return cash to shareholders if it isn't earning it. Sales growth is -0.58%, so the top line is flat to declining. The stock has fallen from ₹36.55 to ₹9.30; the market has already lost confidence. On the positive side, debt/equity of 0.58 is manageable, and promoter holding at 40.49% means management has skin in the game. The Piotroski score of 3/9, however, flags weak financial health. This is not a compounding machine. It is a candidate for turnaround only if operations start generating real profit and returns on capital improve. As Buffett, I prefer businesses with durable moats and good economics. Allcargo's numbers say 'turnaround speculation' rather than 'quality investment.' I would wait until the latest quarter shows net profit above zero, margins recover, and ROE moves toward a double-digit level. Until then, a low price is just a low price, not necessarily value.

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