ANB Metal (AMCL)

FairStock Score: 38/100 — MIXED

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

Key Financials

Strengths

• Return on Capital Employed of 29.60% indicates efficient capital allocation
• Profit growth of 43.41% despite falling sales suggests margin improvement or cost discipline
• Piotroski F-Score of 6/9 points to reasonably healthy financials
• Promoter holding of 71.65% aligns owner-manager interests

Concerns

• Sales declined 11.03%, showing weak demand or pricing in the core business
• P/E of 40.16 is steep for a commodity-linked manufacturer without a clear moat
• No dividend yield at 0.00% means returns depend entirely on uncertain capital appreciation
• Missing book value, ROE and debt-to-equity data limits a Graham-style margin of safety check

AI Analysis

I come to this table with a degree of unease. For ANB Metal, I am missing book value, ROE and debt-to-equity data. A Graham investor cannot calculate margin of safety without book value. At ₹511, the market cap is ₹515 Cr and the stock trades at 40.16 times earnings. That is a richness I do not pay for a commodity-linked aluminium, copper and zinc products company, where pricing power is determined by global cycles, not by the company's brand or moat. The business may be efficient—the 29.60% ROCE is genuinely excellent—but efficient commodity manufacturing can still be a poor investment if the buying price is high and the cycle turns. Recent numbers create mixed signals. Sales declined 11.03%, yet profit grew 43.41%. That kind of divergence is possible when costs fall or product mix improves, but I would not extrapolate 43% profit growth from a shrinking top line. The latest quarter shows sales of ₹88 Cr and net profit of ₹8 Cr. Annualised, that is perhaps ₹32 Cr of earnings, so the market is paying a premium for future growth. The Piotroski F-Score of 6/9 is a small comfort, along with promoters holding 71.65%. But there is zero dividend, so investors rely entirely on capital appreciation. The PEG of 0.93 makes the growth story look reasonable only if profit growth continues at a high pace. In a cyclical commodity business, I am more careful. I want to see sales growth resume and the company preserve its ROCE across the cycle. Financial disclosures also need to improve. I prefer a wonderful business at a fair price; this looks like a fluctuating commodity business at a high price. Watchlist yes, purchase no.

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