Amagi Media Labs (AMAGI)
TurnaroundFairStock Score: 21/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹608.7 |
| Market Cap | ₹13,168.55 Cr |
| P/E Ratio | 129.79 |
| ROCE | -10.42% |
| ROE | 6.33% |
| Dividend Yield | 0% |
| Profit Growth | 292.14% |
| Debt/Equity | 0.02 |
| Sales Growth | 28.5% |
| Promoter Holding | 14.92% |
| 52-Week Range | ₹310.2 — ₹726 |
| Sector | IT - Services |
| Book Value | ₹-3.64 |
Strengths
- Latest quarter turned profitable: net profit of ₹31 Cr on sales of ₹404 Cr.
- Revenue growth is solid at 22.36%, indicating demand for the services.
- Piotroski F-Score of 6/9 suggests some underlying operational improvement.
- Reported debt/equity of 0.04 appears low, though negative book value makes it unreliable.
- Current price is well below the 52-week high of ₹726, so some pessimism may be priced in.
Concerns
- Negative book value of ₹-3.64 per share means no asset cushion for shareholders.
- ROCE is -10.42%, and ROE is not available, showing poor returns on capital.
- Promoter holding of only 14.92% raises serious governance and alignment concerns.
- With market cap of ₹8,264 Cr versus annualized sales of ~₹1,616 Cr, valuation is rich for a company with negative equity.
AI Analysis
At first glance, 22.36% sales growth and a latest-quarter net profit of ₹31 Cr on ₹404 Cr of sales look encouraging. But I did not build my career on headlines; I built it on numbers I can trust. This balance sheet cannot be trusted. Book value is minus ₹3.64 per share, so the equity cushion is gone. ROE is not available, and ROCE is negative at -10.42%. When a company earns less on capital than a simple bank fixed deposit, I walk away. The P/E of 0.00 is not cheap; it is an admission that the earnings figure is meaningless. At ₹8,264 Cr market cap against annualized sales of roughly ₹1,616 Cr, you are paying about five times revenue for a business with negative equity and promoter holding of only 14.92%. That last figure bothers me most: the people inside have very little skin in the game. The profit growth of 292.14% sounds spectacular, but it comes off a very low or negative base. Mr. Market has marked the stock down from ₹726 to ₹376.80, and I think he was right to be skeptical. The Piotroski score of 6/9 suggests some improvement, but Graham never bought a turnaround based on hope; he bought with a margin of safety. Here, price is far above tangible asset value, and the FairStock Score of 1/100 is a bright red flag. There is no margin of safety. This is a speculative turnaround, not a value investment.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer