Atmastco Ltd (ATMASTCO)

FairStock Score: 5/100 — RISKY

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

Key Financials

Strengths

• ROCE of 21.85% indicates efficient capital deployment for a construction business.
• Promoter holding of 66.14% aligns management interests with minority shareholders.
• Latest quarter sales of ₹121 Cr and net profit of ₹12 Cr hint at possible demand revival.
• Market cap of ₹367 Cr gives scope for growth if execution and financials improve.

Concerns

• Revenue and profit are shrinking: -12.65% sales growth and -18.95% profit growth.
• Piotroski F-score of 3/9 suggests weak financial health and possible red flags.
• P/E of 21.35 is demanding for a declining earnings base; dividend yield is zero.
• Book value, ROE, and debt/equity are unavailable, so balance-sheet risk cannot be properly assessed.

AI Analysis

Looking at Atmastco, I am reminded of Graham's warning: you are not buying a stock, you are buying a business. The 21.85% ROCE is the one figure that genuinely impresses me. For a civil construction company, earning that return on capital is no small feat. But a single ratio cannot justify ownership. Sales have contracted 12.65% and profits have fallen 18.95%. The Piotroski F-score is a weak 3/9, which tells me the underlying financial health is deteriorating. With zero dividend, I receive nothing while I wait for a recovery that may not come. At ₹150, the market cap is ₹367 Cr, and the P/E sits at 21.35. That is a demanding multiple for a shrinking earnings base. The 52-week range of ₹98 to ₹268 shows how volatile this stock has been; a fallen share price is not automatically cheap. The latest quarter does show sales of ₹121 Cr and net profit of ₹12 Cr, so perhaps there is a cyclical upturn taking shape. But one quarter is hardly evidence of durable improvement. Promoter holding at 66.14% is reassuring from an alignment standpoint, but it does not create a moat. Civil construction is highly competitive, dependent on execution, and exposed to economic swings. I see no pricing power, no brand, and no structural advantage in these numbers. Also, with book value, ROE and debt-equity all unavailable, I cannot complete my basic health check. A businessman must know what he owns. Here, the data is too incomplete and too negative for me to form a high-conviction value view. I would need a lower price, a cleaner balance sheet, and a proven track record of stability before Atmastco could pass my margin-of-safety test. Until then, I would rather watch from the sidelines.

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