Ameya Precision (AMEYA)

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

Key Financials

Strengths

• Profit growth of 43.28% is strong, and a PEG of 0.53 suggests the market is not pricing in sustained momentum.
• ROCE of 22.55% indicates efficient use of capital.
• Piotroski F-Score of 7/9 points to solid recent fundamental improvement.
• High promoter holding of 72.45% aligns management with minority shareholders.
• Latest quarter delivered ₹20 Cr sales and ₹3 Cr net profit, implying a healthy 15% net margin.

Concerns

• Sales growth is only 6.98%, so profit growth is driven by margin expansion that may not be sustainable.
• No dividend yield means returns depend entirely on capital appreciation.
• Key financials like debt-to-equity, book value, and ROE are unavailable, leaving balance-sheet risk unclear.
• Small market cap of ₹71 Cr and a wide 52-week range of ₹86 to ₹128.45 indicate possible volatility and low liquidity.

AI Analysis

At first glance, Ameya Precision looks like the kind of small-cap that gets overlooked: a market cap of just ₹71 Cr, no dividend, and sales growth of merely 6.98%. But beneath the surface, several numbers make me pause. The company earns a ROCE of 22.55%, which is well above what most industrial product businesses typically generate. Its latest quarter shows sales of ₹20 Cr and net profit of ₹3 Cr, implying a solid 15% net margin. More importantly, profit growth is running at 43.28%, far ahead of revenue. That tells me the story is about expanding margins and operating leverage, not just top-line momentum. On valuation, a P/E of 13.29 and a PEG of 0.53 suggest the market is not paying a premium for this growth. The Piotroski F-Score of 7/9 adds to my comfort; it points to improving fundamentals across profitability, leverage, and efficiency. I also like the 72.45% promoter holding—it aligns management with minority shareholders and reduces capital misallocation risk. That said, I must remain cautious. Revenue growth of 6.98% is not exciting. A 43.28% jump in profits on the back of such modest sales growth may prove to be a margin tailwind, not a durable trend. I have no data on debt-to-equity, book value, or ROE, so I cannot fully judge the balance-sheet risk. With no dividend, my entire return depends on the business continuing to grow and the market recognizing it. The tiny ₹71 Cr market cap and the wide 52-week range of ₹86 to ₹128.45 remind me that this stock could be volatile and illiquid. I would not bet heavily; I would watch whether revenue growth accelerates while margins hold, whether the balance sheet remains clean, and whether profit growth converts into cash. If those hold, Ameya can be a fine small-cap compounder. If revenue stays anaemic, today's profit growth may fade quickly.

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