Apollo Sindoori (APOLSINHOT)

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

Key Financials

Strengths

• Sales growth of 14.48% shows decent top-line momentum.
• Profit growth of 93.01% is strong, though from a low base.
• Piotroski F-Score of 7 suggests improving financial fundamentals.
• Promoter holding of 64.68% aligns management with minority shareholders.
• Debt/equity of 0.54 is manageable.

Concerns

• Latest quarter net profit of ₹1 Cr on sales of ₹161 Cr implies a razor-thin margin below 1%.
• Implied ROE of about 7.7% and ROCE of 8.69% are weak for a stock trading at 25.43 times earnings.
• Dividend yield of only 0.20% gives minority shareholders little income support.
• The 93% profit growth may be cyclical or a low-base effect rather than durable compounding.

AI Analysis

Apollo Sindoori's numbers look like a growth story, but I have learned that hotels and resorts are cyclical businesses, and the latest quarter exposes that. Sales of ₹161 Cr produced only ₹1 Cr of net profit — a margin under 1%. That is not the signature of a franchise with pricing power; it is the signature of an industry where revenue can be strong while profits remain thin. A 93% jump in profit sounds exciting, but it is meaningless if it comes from a depressed base. Such spikes often reverse. The valuation does not provide the margin of safety Graham demanded. At ₹1,143.35, the P/E is 25.43 and P/B is 1.95. The implied ROE is roughly 7.7% (1.95 ÷ 25.43), and ROCE is only 8.69%. For a 25-times earnings price, I expect a superior return on capital; this business is earning below average. Debt/equity of 0.54 is acceptable, but at a 0.20% dividend yield, shareholders are not being paid much to wait. Book value of ₹586.82 offers some support, but I buy businesses, not book values. There are some positives. Promoter holding at 64.68% is reassuring, and a Piotroski F-Score of 7 suggests fundamentals are improving. Sales growth of 14.48% is decent. But these are not enough to turn a sub-9% ROCE into a wonderful business. The PEG of 0.47 is tempting, but using one year's growth for a cyclical company can mislead. If the company can sustain margin expansion, it may become a fast grower. Today, I would classify it as a cyclical and wait for either a margin of safety in price or proof that earnings are durable.

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