AvenuesAI (CCAVENUE)

FairStock Score: 82/100 — HIGH CONVICTION

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

Key Financials

Strengths

• Very low leverage with Debt/Equity of 0.02 and current ratio of 2.01
• Piotroski F-Score of 7/9 and Altman Z-Score of 3.68 indicate financial stability
• Exceptional sales growth of 122.47%, with latest quarterly sales at ₹2,381 Cr
• Graham Number of ₹15.22 is slightly above the current price of ₹14.57

Concerns

• ROE of 5.24% and ROCE of 8.65% show weak capital efficiency; profit growth of 19.39% lags far behind sales growth
• Promoter holding of 27.29% is low for a company with a high-growth story
• No dividend and negative EV/EBITDA of -122.39 raise questions about cash flow quality and valuation
• Margin of safety at just 4.26% is too thin for a Graham-style investor

AI Analysis

Let me start with the balance sheet, because preservation comes first. AvenuesAI has Debt/Equity of 0.02, a current ratio of 2.01, an Altman Z-score of 3.68, and a Piotroski score of 7 out of 9. This is not a company under financial stress. But Graham taught me to pay for earnings power, not promise. The company shows sales growth of 122.47%—latest quarter sales at ₹2,381 Cr—yet net profit grew only 19.39%, and ROE is just 5.24%. At a P/E of 23.23, I am being asked to pay a rich multiple for a business that earns very little on its equity. ROCE of 8.65% is modest at best. This is the classic sign of a fast-growing, low-quality business: revenue expands, but shareholders do not see proportional profits. The Graham Number is ₹15.22, so the stock at ₹14.57 offers a margin of safety of only 4.26%. That is thin. I like the low leverage and strong liquidity, but the promoter holding of 27.29% is lower than I would like from a company asking me to trust its growth story. The negative EV/EBITDA of -122.39 is another item that makes me uncomfortable; I cannot value a business properly when that number behaves so oddly. The PEG ratio of 0.95 looks attractive at first glance, but only if current profit growth is sustainable. With profit growth at 19.39% and revenue growth at 122.47%, I worry that the business is buying growth. I would call this a fast grower, not a compounder. If management can turn revenue into higher ROE and cash profits, the stock may deserve its multiple. Until then, the margin of safety is too small for my liking.

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