Automotive Stamp (ASAL)

FairStock Score: 49/100 — MIXED

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

Key Financials

AI Analysis

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

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.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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