Automotive Stamp (ASAL)
Fast GrowerFairStock Score: 49/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹499.1 |
| Market Cap | ₹791.79 Cr |
| P/E Ratio | 26.52 |
| ROCE | 24.15% |
| ROE | 3,996.9% |
| Dividend Yield | 0% |
| Profit Growth | 84.61% |
| Debt/Equity | 3.44 |
| Sales Growth | 46.26% |
| Promoter Holding | 75% |
| 52-Week Range | ₹374.5 — ₹654.65 |
| Sector | Auto Components |
| Book Value | ₹0.3 |
Strengths
- Sales growth of 26.23% and profit growth of 139.50% show strong recent momentum.
- ROCE of 24.15% indicates reasonably efficient use of capital.
- Piotroski F-Score of 7/9 points to solid recent fundamental health.
- Promoter holding of 75% aligns owner-manager interests.
- PEG ratio of 0.44 suggests growth is not fully reflected in the price if earnings momentum continues.
Concerns
- Debt/Equity of 7.18 is dangerously high with book value of just ₹0.30, leaving a thin equity buffer.
- Latest quarter net profit of ₹7 Cr on sales of ₹250 Cr implies a very thin net margin of about 2.8%.
- P/E of 36.68 with zero dividend yield makes valuation heavily dependent on sustained high growth.
- Profit growth of 139.50% is from a low base and may not indicate a durable competitive moat.
AI Analysis
At first glance ASAL looks like an exciting growth story, but I have learned to keep my enthusiasm in check. Sales are up 26.23% and profit has jumped 139.50%—numbers any owner would like to see. Yet at ₹493.15 against a book value of ₹0.30, I am paying an enormous premium for a very thin equity cushion. The P/E of 36.68 is rich, and with no dividend, my only source of return is continued growth and eventual price recognition. The debt/equity ratio of 7.18 troubles me. An auto-parts maker with high leverage in a cyclical industry can suffer when the road bends. ROCE of 24.15% is decent, but ROE of 3996.90% is more a reflection of tiny book value than a durable moat. The latest quarter says a lot: ₹250 Cr of sales produced only ₹7 Cr of net profit—a razor-thin margin. Profits grow off a low base; a small downturn can erase them. Promoter holding at 75% is good alignment, and a Piotroski score of 7/9 suggests recent financials are not weak. The PEG ratio of 0.44 argues growth is not as expensive as it appears, but only if the growth is sustainable. Graham would say this balance sheet lacks a margin of safety. I would need to see lower leverage, expanding margins, and sustained sales growth before calling this a wonderful business at a fair price. For now, it is a promising fast grower, but not a compounder I can sleep on.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer