Auro Impex (AUROIMPEX)

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

Key Financials

Strengths

• Low P/E of 9.29 and PEG of 1.08 could offer value if earnings stabilize.
• Sales growth of 8.57% shows the business is still expanding at a modest pace.
• Latest quarter sales of ₹135 Cr are far larger than the ₹35 Cr market cap, indicating a substantial revenue base.
• High promoter holding of 71.62% aligns owners with the company, provided governance is sound.
• ROCE of 10.63% is positive, suggesting some capital efficiency despite weak profit growth.

Concerns

• Profit growth is down 33.61%, and latest quarter net profit of ₹2 Cr on ₹135 Cr sales implies a very thin margin of about 1.5%.
• Piotroski F-Score of 4/9 points to weak fundamental health and possible financial strain.
• No dividend is paid, so minority investors receive no income while waiting for a turnaround.
• Key data like book value, debt/equity, and ROE are unavailable, making it impossible to assess a proper margin of safety.

AI Analysis

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.

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