Amines & Plast. (AMNPLST)

FairStock Score: 28/100 — RISKY

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

Key Financials

Strengths

• Low debt/equity of 0.11 provides financial cushion
• High promoter holding of 73.17% aligns interests with minority shareholders
• ROCE of 20.01% indicates decent capital efficiency
• ROE of 14.65% remains respectable despite the downturn
• Latest quarter is still profitable with ₹8 Cr net profit on ₹142 Cr sales

Concerns

• Sales declined 24.90% and profits declined 17.23%, showing significant earnings deterioration
• Piotroski F-score of 3/9 signals weak financial health
• P/E of 24.97 and P/B of 3.85 offer no margin of safety for a declining commodity business
• Dividend yield of 0.32% provides negligible return while waiting for recovery

AI Analysis

This business is exactly the kind that demands caution. Amines & Plast earns a respectable ROCE of 20.01% and a ROE of 14.65%, with a clean balance sheet—debt/equity of only 0.11 and promoter holding of 73.17%. Those are the positives. But as a commodity chemical producer, it has no pricing power, and the numbers tell a cyclical or deteriorating story. Sales have fallen 24.9% and profits 17.23% in the latest year. The latest quarter still shows only ₹8 Cr net profit on ₹142 Cr sales—a thin margin. Meanwhile, I am asked to pay ₹164, or about 24.97 times earnings, and 3.85 times book value. For a commodity business with shrinking sales, that is not a margin of safety. The Piotroski F-score of 3/9 is a serious red flag; it suggests the weak operating results may be hurting the financial foundations, despite the low debt. The dividend yield is negligible at 0.32%, so there is no compensation while waiting. In Graham's language, price is what you pay, value is what you get. Here I see no clear evidence of value. The 52-week range of ₹127 to ₹250 shows the market itself has realized earnings power has collapsed. This could be a cyclical trough, but Mr. Market is not offering a discount; the P/E remains elevated because earnings have fallen faster than price. I would need a much lower price, or clear proof that sales and margins have stabilized and can grow, before considering an investment. The company is not a bad business necessarily, but it is an average commodity business at an above-average valuation. I will watch from the sidelines.

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