Allcargo Termi (ATL)

FairStock Score: 45/100 — MIXED

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

Key Financials

Strengths

• Sales growth of 16.55% and profit growth of 15.63% show double-digit expansion.
• ROE of 15.20% with Piotroski F-Score of 7/9 indicates decent operational health.
• Promoter holding of 67.17% aligns management interests with minority shareholders.
• Latest quarter sales of ₹218 Cr and net profit of ₹15 Cr demonstrate ongoing profitability.

Concerns

• Debt/equity of 2.09 is high, and ROCE of 11.59% is lower than ROE, suggesting leverage is boosting returns.
• Valuation is expensive: P/E of 19.79 and P/B of 3.20 against book value of ₹7.96 leave little margin of safety.
• Zero dividend yield means shareholders get no cash return while waiting.
• 52-week range of ₹18.20–₹40.51 highlights the cyclical volatility of the port services business.

AI Analysis

Allcargo Termi is a business I would circle with caution. At ₹25.45, the market capitalisation is ₹671 crore, but book value is just ₹7.96 per share, so I am paying 3.2 times book. That is not a Graham-style margin of safety. ROE of 15.20% looks decent, but ROCE of only 11.59% tells me returns on capital are modest, and with debt/equity at 2.09, the equity return is partly borrowed. Leverage can flatter ROE until it does not. The latest quarter shows sales of ₹218 crore and net profit of ₹15 crore, so the company is earning, but the 0% dividend yield means I get no cash while I wait. Growth is positive—sales up 16.55%, profit up 15.63%—and a PEG of 1.23 makes the price somewhat reasonable if that growth continues. The Piotroski score of 7/9 suggests recent financial health is okay, and promoter holding of 67.17% aligns interests. However, this is a port services company, tied to trade cycles; the 52-week range of ₹18.20 to ₹40.51 shows how sharply sentiment can swing. At 19.79 times earnings, I am paying a full price for a cyclical, leveraged business with no dividend. I would prefer to wait for a lower price or a stronger balance sheet. The FairStock Score of 40/100 matches my own mixed judgment: a decent operator, but not a compelling value at today's price. In Buffett's words, it is far better to buy a wonderful business at a fair price than a fair business at a wonderful price—but here the price is not wonderful, and the balance sheet is not wonderful either. I would keep it on the watchlist, not in the portfolio.

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