Autoline Industr (AUTOIND)

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

Key Financials

Strengths

• Return on equity of 21.21% is attractive, albeit leverage-driven.
• Sales growth of 34.21% shows strong demand traction in the auto components space.
• Piotroski F-score of 7/9 indicates solid financial health and operational efficiency.
• Current price is 38% above the 52-week low, offering a potential entry point if fundamentals stabilize.

Concerns

• Debt-to-equity of 1.54 is high; ROCE of only 14.21% suggests leverage, not operational excellence, is boosting ROE.
• Profit growth of 6.15% lags far behind sales growth of 34.21%, pointing to severe margin compression.
• No dividend yield of 0.00% means minority shareholders earn no income while waiting.
• Promoter holding of 32.60% is relatively low, raising governance questions in a capital-intensive cyclical.

AI Analysis

Autoline Industr is a classic example of why sales growth alone does not create shareholder value. The company grew sales by 34.21%, yet profit only advanced 6.15% — a huge red flag. As Graham would say, price is what you pay, value is what you get. Here, the market asks ₹66.64, or 23.84 times earnings, for a business whose return on capital is 14.21% but whose debt-to-equity is 1.54. Management seems to be running hard on borrowed money to expand, but the bottom line is not keeping pace. The 21.21% ROE looks impressive, but it is flattered by leverage; without the debt, the business earns far less. Moreover, promoter holding of 32.60% is not particularly comforting; minority shareholders depend on wise capital allocation, and with zero dividend, we receive nothing while waiting. On the positive side, a Piotroski F-score of 7/9 suggests the company is not deteriorating operationally, and the price has fallen from ₹103.85 to ₹66.64, providing a margin of safety if the auto cycle turns in its favour. But this is a cyclical business, not a moat-protected franchise. The book value of ₹30.20 means we pay a premium of 2.21 times for assets that earn a modest 14% ROCE. I would need to see meaningful profit growth and a reduction in debt before considering this a bargain. For now, the market is pricing in a fast grower, but the numbers tell me a cyclical with execution fatigue.

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