Alphageo (India) (ALPHAGEO)

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

Key Financials

Strengths

• Price ₹226 is only 0.55× book value of ₹409.98, giving a margin of safety if assets are sound.
• Sales grew 50.90%, showing top-line momentum despite losses.
• Promoter holding 45.99% aligns owners with minority shareholders.
• Dividend yield of 4.00% suggests some cash return despite weak earnings.
• Piotroski F-Score of 6/9 is moderate, not deeply distressed.

Concerns

• Latest quarter net profit is -₹6 Cr on ₹17 Cr sales; ROE and ROCE are negative (-5.93%, -4.32%).
• P/E is 0.00 because earnings are negative; the stated profit growth of 24.84% is meaningless without a clear base.
• Debt/Equity is N/A, so capital structure risk cannot be assessed.
• Share is down from 52-week high of ₹315.95 and the industry is cyclical and capital-intensive.

AI Analysis

When I look at Alphageo, I first ask: is this a business I can understand and can it earn a good return on capital? Right now the answer is troubling. The company is losing money—latest quarter ₹17 Cr revenue produced ₹-6 Cr net profit, and ROE is -5.93% with ROCE -4.32%. A negative P/E means the market is not paying for earnings; it is paying for something else. That something else is the balance sheet. At ₹226, the share trades at only 0.55 times book value of ₹409.98. That creates a classic Graham-style margin of safety, provided the stated book value is real and not trapped in outdated receivables or idle rigs. I also note sales growth of 50.90%, but growth without profit is not value creation. A 4.00% dividend yield is pleasant, but I would question it when profits are negative; dividends must eventually come from earnings or strong cash flows. Promoter holding of 45.99% is good alignment, and the Piotroski score of 6/9 doesn't scream distress, but it is not a clean bill. This is a cyclical, asset-heavy offshore drilling support business. I would classify it as an asset play, not a franchise. The 52-week range of ₹164.80 to ₹315.95 shows volatility and a market that is unsure. I would not buy solely because it is cheap; I would want evidence that capital is being redeployed into profitable work. Until profitability returns and the debt/capital structure becomes clear, this is a small, speculative position at best.

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