Auro Impex (AUROIMPEX)

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

Key Financials

AI Analysis

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

This business reminds me of why I prefer to look at numbers first and stories later. Auro Impex is a small company at ₹34, with a market cap of just ₹35 crore. A P/E of 9.29 looks cheap on the surface, but a low multiple can be a value trap when earnings are shrinking. Net profit fell 33.61%, and the latest quarter shows only ₹2 crore profit on ₹135 crore sales — a thin net margin of roughly 1.5%. That tells me the economics are fragile. Sales grew 8.57%, which is decent, but profit is doing the opposite; this is not the compounding machine I seek. The Piotroski score of 4 out of 9 reinforces my caution: the fundamental health is weak. ROCE of 10.63% is okay but not outstanding, and with zero dividend, the minority shareholder gets no income while waiting for growth. I cannot calculate book value or debt-equity from the information given, and that bothers me. Graham insisted on knowing the asset value and the debt burden before investing; without those, any margin of safety is unknown. The promoter holding is 71.62%, which can be positive, but it also means the minority float is thin. Electrodes and refractories is a cyclical business, tied to steel and industrial activity. When the cycle turns down, cheap-looking stocks can stay depressed for years. For me, the evidence points to a cyclical business trying to find its footing, not a stable compounder. I would need stronger balance sheet data, stable margins, and evidence that current low earnings are near a trough before I put money here.

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