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Azad Engineering (BOM:544061) Piotroski F-Score : 4 (As of Dec. 16, 2024)


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What is Azad Engineering Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Azad Engineering has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Azad Engineering's Piotroski F-Score or its related term are showing as below:

BOM:544061' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 4   Max: 4
Current: 4

During the past 4 years, the highest Piotroski F-Score of Azad Engineering was 4. The lowest was 4. And the median was 4.


Azad Engineering Piotroski F-Score Historical Data

The historical data trend for Azad Engineering's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Azad Engineering Piotroski F-Score Chart

Azad Engineering Annual Data
Trend Mar21 Mar22 Mar23 Mar24
Piotroski F-Score
N/A N/A N/A N/A

Azad Engineering Quarterly Data
Mar21 Mar22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only N/A N/A N/A N/A 4.00

Competitive Comparison of Azad Engineering's Piotroski F-Score

For the Specialty Industrial Machinery subindustry, Azad Engineering's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Azad Engineering's Piotroski F-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Azad Engineering's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Azad Engineering's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was 168.05 + 149.45 + 171.23 + 208.82 = ₹698 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = ₹0 Mil.
Revenue was 892.26 + 801.49 + 984.09 + 1115.35 = ₹3,793 Mil.
Gross Profit was 788.92 + 171.78 + 830.88 + 956.9 = ₹2,748 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(6366.3 + 0 + 7970.79 + 0 + 9728.79) / 5 = ₹8021.96 Mil.
Total Assets at the begining of this year (Sep23) was ₹6,366 Mil.
Long-Term Debt & Capital Lease Obligation was ₹1,080 Mil.
Total Current Assets was ₹4,802 Mil.
Total Current Liabilities was ₹1,539 Mil.
Net Income was 38.5 + 148.41 + 74.04 + 194.85 = ₹456 Mil.

Revenue was 598 + 748.54 + 759.1 + 828.37 = ₹2,934 Mil.
Gross Profit was 518.3 + 250.62 + 681.28 + 707.2 = ₹2,157 Mil.
Average Total Assets from the begining of last year (Mar22)
to the end of last year (Sep23) was
(4043.21 + 0 + 5892.08 + 6133.45 + 6366.3) / 5 = ₹5608.76 Mil.
Total Assets at the begining of last year (Mar22) was ₹4,043 Mil.
Long-Term Debt & Capital Lease Obligation was ₹2,158 Mil.
Total Current Assets was ₹3,178 Mil.
Total Current Liabilities was ₹1,743 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Azad Engineering's current Net Income (TTM) was 698. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Azad Engineering's current Cash Flow from Operations (TTM) was 0. ==> Negative ==> Score 0.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep23)
=697.55/6366.3
=0.10956914

ROA (Last Year)=Net Income/Total Assets (Mar22)
=455.8/4043.21
=0.11273221

Azad Engineering's return on assets of this year was 0.10956914. Azad Engineering's return on assets of last year was 0.11273221. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Azad Engineering's current Net Income (TTM) was 698. Azad Engineering's current Cash Flow from Operations (TTM) was 0. ==> 0 <= 698 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=1080.05/8021.96
=0.13463667

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar22 to Sep23
=2157.59/5608.76
=0.38468218

Azad Engineering's gearing of this year was 0.13463667. Azad Engineering's gearing of last year was 0.38468218. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep24)=Total Current Assets/Total Current Liabilities
=4802.38/1538.63
=3.12120523

Current Ratio (Last Year: Sep23)=Total Current Assets/Total Current Liabilities
=3177.6/1743.17
=1.82288589

Azad Engineering's current ratio of this year was 3.12120523. Azad Engineering's current ratio of last year was 1.82288589. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Azad Engineering's number of shares in issue this year was 58.823. Azad Engineering's number of shares in issue last year was 59.113. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=2748.48/3793.19
=0.72458274

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2157.4/2934.01
=0.73530765

Azad Engineering's gross margin of this year was 0.72458274. Azad Engineering's gross margin of last year was 0.73530765. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep23)
=3793.19/6366.3
=0.59582332

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar22)
=2934.01/4043.21
=0.72566352

Azad Engineering's asset turnover of this year was 0.59582332. Azad Engineering's asset turnover of last year was 0.72566352. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+0+0+0+1+1+1+0+0
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Azad Engineering has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Azad Engineering  (BOM:544061) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Azad Engineering Piotroski F-Score Related Terms

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Azad Engineering Business Description

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Traded in Other Exchanges
Address
90/C, 90/D, Phase-1, I.D.A, Jeedimetla, Hyderabad, TG, IND, 500055
Azad Engineering Ltd is an original equipment manufacturer ('OEM') in the aerospace and defense, energy, and oil and gas industries, manufacturing engineered, complex, and mission and life-critical components. It manufactures complex and engineered precision-forged and machined components that are mission- and life-critical. The company's products include 3D rotating airfoil portions of turbine engines and other key products for combustion, hydraulics, flight-controls, propulsion, and actuation which power defence and civil aircrafts, spaceships, defence missiles, nuclear power, hydrogen, gas power, oil, and thermal power. Geographically, the company caters to both Indian and international markets of which, a majority of its revenue is generated outside India.

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