Aptech (APTECHT)
TurnaroundFairStock Score: 37/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 1/1
Key Financials
| Current Price | ₹92.41 |
| Market Cap | ₹536 Cr |
| P/E Ratio | 21.9 |
| ROCE | 13.92% |
| ROE | 7.87% |
| Dividend Yield | 4.81% |
| Profit Growth | 13.8% |
| Debt/Equity | 0.05 |
| Sales Growth | 11.1% |
| Promoter Holding | 47.35% |
| 52-Week Range | ₹69.1 — ₹134.5 |
| Sector | Other Consumer Services |
| Book Value | ₹43.26 |
Strengths
- Low debt/equity of 0.06 gives a strong balance sheet and financial cushion.
- Piotroski F-Score of 7/9 points to improving fundamentals and earnings quality.
- Sales growth of 24.41% and the sharp profit rebound indicate operational momentum.
- Dividend yield of 5.14% rewards patient shareholders if maintained.
- Promoter holding of 47.35% keeps management aligned with public shareholders.
Concerns
- ROE of 7.87% is mediocre; the company is not compounding capital at a high rate.
- Latest quarter net profit margin is only about 6.6% (₹9 Cr on ₹137 Cr sales), leaving little room for error.
- High payout ratio implied by a 5.14% yield and P/E of 17.9 suggests minimal reinvestment in the business.
- The 186.36% profit growth is from a low base and may overstate sustainable growth; PEG of 0.17 is therefore unreliable.
AI Analysis
Business quality first: Aptech operates in education, a straightforward field I can understand. But the figures do not yet reveal a wide moat. At ₹108.01 the market cap is ₹507 Cr, 17.9 times earnings and 2.46 times book, while book value is ₹43.87. The balance sheet is clean: debt/equity of 0.06, Piotroski 7/9, and ROCE of 13.92% is decent. Sales grew 24.41% and profit jumped 186.36%, but the latest quarter earned only ₹9 Cr on ₹137 Cr of sales — a thin 6.6% margin. ROE of 7.87% tells me this is not yet a high-return compounder. The 5.14% dividend yield is attractive, yet with earnings per share near ₹6 and dividend around ₹5.55, the company pays out nearly all earnings, limiting internal reinvestment. Promoter holding of 47.35% is a helpful sign of alignment. Valuation? A P/E of 17.9 is not excessive if growth continues. The PEG of 0.17 looks tempting, but I distrust low PEGs born from a 186% profit recovery off a low base; that is a turnaround, not a steady growth franchise. In Graham's language, profit growth must be demonstrated over time. FairStock says 50, mixed; I agree. I would wait for more quarters of healthy margins and cash generation. If this is a genuine turnaround, today's price may be fair; if it remains a low-ROE business, the financial strength alone is not enough. I want a margin of safety before investing.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer