Arham Tech (ARHAM)

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

Key Financials

Strengths

• Revenue growth of 40.66% shows strong demand momentum
• ROCE of 23.69% indicates efficient capital deployment
• Profit growth of 123.48% demonstrates operating leverage and margin expansion
• Piotroski F-Score of 7/9 suggests solid fundamental health
• Promoter holding of 56.16% aligns management with minority shareholders

Concerns

• P/E of 21.97 leaves little room for error if growth decelerates
• Critical value inputs like book value, ROE, and debt-equity are unavailable
• Zero dividend means no income support, only reliance on future capital gains
• Consumer electronics is highly competitive and offers no obvious durable moat from the data provided

AI Analysis

At ₹146.40, Arham Tech is not a classic Graham net-net; it is a fast-growing consumer electronics business trading at 21.97 times earnings. Graham would ask: what am I really buying? ROCE of 23.69% is encouraging, and a Piotroski F-Score of 7/9 suggests decent financial health. Sales growth of 40.66% is strong, and profit growth of 123.48% shows operating leverage working. The PEG of 0.27 would excite a growth investor, but Buffett would insist on knowing whether that growth is durable. One quarter of ₹46 Cr sales and ₹6 Cr profit is a good sign, but extrapolating one quarter into a permanent moat is precisely the kind of optimism Graham warned against. Consumer electronics is brutally competitive, and with a 52-week range of ₹108 to ₹194.85, Mr. Market is clearly unsure about this business. There is zero dividend, so shareholders depend entirely on reinvestment and capital gains. Promoter holding of 56.16% is reassuring, but with a market cap of only ₹232 Cr, a missed order cycle or inventory build-up can hit the stock hard. The biggest red flag is insufficient data: no book value, no ROE, no debt-equity ratio. Graham would say the numbers we cannot see matter as much as the ones we can. This is a promising fast grower, not a stalwart. I would need several more quarters of consistent profitable growth, stable margins, and strong cash flow before paying 22 times earnings. Right now there is momentum, but not enough margin of safety. Watchful patience is better than impulsive participation.

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