Anantam Highways (ANANTAM)

FairStock Score: 43/100 — MIXED

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

Key Financials

Strengths

• Low P/E of 5.43 suggests an inexpensive entry relative to current earnings
• Latest quarter net profit of ₹45 Cr on sales of ₹84 Cr shows strong profitability
• ROCE of 18.96% indicates decent capital efficiency
• Dividend yield of 2.44% provides some income cushion
• Road assets in toll/annuity segment offer stable cash flow visibility

Concerns

• Sales growth and profit growth are both 0.00%, implying a stagnant business
• Piotroski F-Score of 3/9 points to weak overall financial health
• Lack of debt/equity, book value, and ROE data limits balance sheet assessment
• FairStock Score of 43/100 suggests a mixed, not compelling, investment case

AI Analysis

At ₹102.53, Anantam Highways trades at a P/E of 5.43. On the surface, that looks like the kind of bargain Graham would have circled. But a low multiple is only meaningful if it comes with financial strength, transparency, and a visible path to growth. The latest quarter shows sales of ₹84 Cr and net profit of ₹45 Cr, implying strong margins. ROCE of 18.96% is respectable, and a 2.44% dividend yield gives the patient shareholder some income. However, I see serious causes for caution. Sales growth and profit growth are both 0.00%. A business that is not growing can be a stable cash generator, but it is not a compounder. The Piotroski F-Score of 3/9 is a clear warning flag; it suggests weak financial health beneath the surface. I also have no visibility into book value, return on equity, debt-to-equity, or promoter holding. Graham taught us to never rely on a single ratio. A cheap P/E on an opaque balance sheet is not an investment; it is a speculation. The FairStock Score of 43/100 reinforces my hesitation. Road assets in India can provide steady toll, annuity, and hybrid-annuity cash flows, but with zero growth and weak fundamentals, Anantam looks more like a bond-like asset than a growing business. I would want evidence of debt reduction, improvement in the F-Score, and a clear catalyst for earning power before treating this as a value buy. Price alone is not value.

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