Ashapura Minech. (ASHAPURMIN)
CyclicalFairStock Score: 38/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹603.45 |
| Market Cap | ₹5,764.52 Cr |
| P/E Ratio | 14.17 |
| ROCE | 18.64% |
| ROE | 50.25% |
| Dividend Yield | 0.17% |
| Profit Growth | 5% |
| Debt/Equity | 0.88 |
| Sales Growth | 19.2% |
| Promoter Holding | 47.88% |
| 52-Week Range | ₹455.1 — ₹924.9 |
| Sector | Minerals & Mining |
| Book Value | ₹27.21 |
Strengths
- ROE of 50.25% shows efficient capital use in the current upcycle.
- Sales growth of 10.98% and latest quarterly revenue of ₹960 Cr indicate the business is still expanding.
- P/E of 13.24 is not demanding if earnings can stabilize or recover.
- Promoter holding of 47.88% aligns management interests with minority shareholders.
- ROCE of 18.64% is respectable relative to debt levels.
Concerns
- Profit growth of -16.24% alongside sales growth of 10.98% points to margin compression.
- Piotroski F-Score of 4/9 signals weak overall financial health.
- P/B of 22.80 gives no asset-value protection; book value is only ₹27.21 against a price of ₹620.30.
- Dividend yield of 0.19% is negligible, leaving investors entirely dependent on capital gains.
AI Analysis
As I look at Ashapura Minech, I see a business that rewards shareholders in good years but demands caution. The numbers say profit growth fell 16.24% while sales grew 10.98% — that is a classic sign of margin pressure, not a durable expansion. The latest quarter's ₹960 Cr revenue produced ₹76 Cr profit, which annualizes to roughly ₹304 Cr, below the trailing earnings implied by a ₹5,049 Cr market cap and a P/E of 13.24. So the market is already paying up for a possible recovery. A P/B of 22.80 against book value of ₹27.21 is far beyond any margin of safety Graham would accept. The 50.25% ROE is eye-catching, but high ROE with falling profits often appears near the top of a cycle. With debt/equity at 0.86 and a Piotroski score of only 4/9, the financial health is not strong; the score tells me overall quality is missing. I also see a very low dividend yield of 0.19%, so the investor is dependent entirely on price appreciation and a business turnaround. Promoter holding of 47.88% is positive because interests are aligned. The 52-week range of ₹455.10 to ₹924.90 shows real volatility; buying near ₹620.30 is not obviously cheap. A PEG of 1.21 assumes growth, but the current profit trend is negative. This is a cyclical industrial-minerals business, not a franchise with predictable demand. I would wait for either a lower price, evidence of profit stabilization, or better balance-sheet signals before acting.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer