Aspire & Innovat (ASPIRE)

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

Key Financials

Strengths

• Low headline valuation: P/E of 7.36 and market cap of ₹19 Cr relative to latest quarter sales of ₹60 Cr offer a potential deep-value entry if earnings stabilize.
• ROCE of 10.72% suggests existing capital is earning a reasonable return, despite small scale.
• Promoter holding of 72.35% aligns management interests with minority shareholders.
• 52-week range from ₹10.20 to ₹27.00 indicates potential upside from current ₹17 if business turns.

Concerns

• Revenues declined 40.06% and profits 58.33%, signaling serious business deterioration.
• Piotroski F-Score of 3/9 indicates weak fundamental and accounting health.
• No dividend (0.00%), so investors get no income while waiting.
• Critical data absent: book value, debt/equity, ROE — insufficient basis for Graham-style margin-of-safety calculation.

AI Analysis

At ₹17, Aspire & Innovat is a classic Graham-style cigar butt: market cap ₹19 Cr, P/E 7.36. But cheap can be a trap. The business earns a profit — latest quarter net profit ₹1 Cr on sales ₹60 Cr — yet those profits are shrinking, with sales down 40.06% and profit down 58.33%. I cannot call this a franchise. Household appliances in India face intense competition, limited pricing power, and rapid technological shifts; I see no sustainable moat here. ROCE of 10.72% is respectable but not exciting, and with a Piotroski F-Score of just 3/9, the financial health indicators are weak. The promoter holding of 72.35% is a positive, but it also means low free float and possible governance questions. There is no dividend, so shareholders depend entirely on price appreciation and eventual earnings recovery. The 52-week range of ₹10.20 to ₹27.00 shows high volatility and uncertainty. Graham would say: price is what you pay, value is what you get. Here, value depends on whether latest quarter's activity can be sustained and grown. With insufficient book value, debt-equity and ROE data, I cannot compute the margin of safety. A P/E of 7.36 suggests the market expects continued deterioration, and the -40% revenue decline justifies that pessimism. This is likely a turnaround situation, not a compounder. I would not rush in; I would wait for evidence of stabilization — at least two consecutive quarters of improving sales and profit, plus better working capital management. Until then, this remains a small, speculative holding at best, not a core Buffett position. My discipline: it is far better to miss a bargain than to buy a business whose financial foundation I cannot see.

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