Anlon Tech (ANLON)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Anlon Tech is an interesting small-cap, but I would rather call it a business to study than a business to buy blindly. The first thing that strikes me is the absence of key data: no book value, no return on equity, no debt-to-equity ratio. Graham taught me to refuse to invest in something I cannot measure. The reported numbers, however, are impressive. Sales rose 117.10% and profit rose 112.55%, and the latest quarter shows ₹41 Cr in sales with ₹5 Cr in net profit. That is a roughly 12% margin. ROCE of 19.34% suggests the company is earning a reasonable return on capital. A Piotroski F-score of 7/9 adds some comfort on financial quality. Promoter holding of 62.06% is a good sign; owners' interests are tied to minority shareholders. But there is no dividend, so shareholders need the business to keep reinvesting at high rates. The valuation is not obviously cheap: market cap of ₹239 Cr against a trailing P/E of 25.50. A PEG of 0.22 looks mouth-watering, but PEG is only meaningful if 112% growth persists. One year of explosive growth does not create a durable moat. Commercial services businesses often compete on relationships and execution, and that can change quickly. The share price at ₹392.50, near the bottom of ₹335-₹748 range, tells me Mr. Market is already questioning the narrative. If growth slows, a P/E of 25.5 will leave little room for error. I would want to see consistent margins, sustainable order flow, and better balance-sheet disclosure before committing significant capital. For now, this is a fast grower worth watching, not a compounding machine I can rely on.

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