Ashapura Minechem Ltd.
ISIN: INE348A01023 • Market Cap: ₹5,629 Cr
The 5-Pillar Quality Audit for Ashapura Minechem Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (10.1%), Return on Capital Employed (17.1%), and equity compounding (23.8%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.93 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (44.3%) and 3Y PAT CAGR (48.7%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 13.83 vs PEG of 0.79 and Dividend Yield of 0.3%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 48.0%, backed by 19.6% institutional ownership.
Key Fundamental Strengths
Robust Equity Compounding (ROE: 23.8%)
Shareholder equity compounds at a healthy 23.8%, exceeding average Indian equity benchmarks.
Strong Topline Expansion (3Y Sales CAGR: 44.3%)
Revenue has expanded at 44.3% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 48.7%)
Net earnings have compounded at 48.7% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 13.83)
Trading at a P/E multiple of 13.83, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Elevated Financial Gearing (D/E: 0.93)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Sectoral & Macro Headwinds (Metals & Mining)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Metals & Mining space.
Quantitative Strategy Eligibility
Checking ASHAPURMIN against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 80/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Metals & Mining Sector Peer Comparison
Compare ASHAPURMIN directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Ashapura Minechem Ltd. (ASHAPURMIN)Current | 80/100 | ₹5,629 Cr | 13.83 | 17.1% | 0.93 | — |
| Adani Enterprises Ltd. (ADANIENT) | 58/100 | ₹4.03 Lakh Cr | 54.17 | 5.1% | 1.07 | View |
| JSW Steel Ltd. (JSWSTEEL) | 73/100 | ₹3.13 Lakh Cr | 12.64 | 10.7% | 0.96 | View |
| Hindustan Zinc Ltd. (HINDZINC) | 88/100 | ₹2.34 Lakh Cr | 13.72 | 62.3% | 0.37 | View |
| Hindalco Industries Ltd. (HINDALCO) | 71/100 | ₹2.33 Lakh Cr | 14.19 | 12.7% | 0.71 | View |
| Tata Steel Ltd. (TATASTEEL) | 62/100 | ₹2.30 Lakh Cr | 20.82 | 11.9% | 0.84 | View |
Frequently Asked Questions: Ashapura Minechem Ltd.
Q:What is the 5-Pillar Fundamental Score for Ashapura Minechem Ltd. (ASHAPURMIN)?
Ashapura Minechem Ltd. has a RupeeTools Fundamental Score of 80/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (69/100), Financial Health (71/100), Growth (99/100), Valuation (95/100), and Ownership Quality (70/100).
Q:Is ASHAPURMIN fundamentally strong for long-term investment?
Yes, ASHAPURMIN exhibits solid fundamental strength with a 80/100 score, driven by a return on equity of 23.8% and a debt-to-equity ratio of 0.93.
Q:Does ASHAPURMIN pass the Coffee Can Investing filter?
Yes! ASHAPURMIN satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does ASHAPURMIN compare against other Metals & Mining peers?
Within India's Metals & Mining sector, ASHAPURMIN trades at a P/E of 13.83 and generates an ROCE of 17.1%. Compare its 5-Pillar score of 80/100 against top sector peers like Adani Enterprises Ltd. (58/100), JSW Steel Ltd. (73/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.