Adamjee Insurance Co (KAR:AICL) Beneish M-Score: -2.48 (As of Jun. 30, 2026)


KAR:AICL Adamjee Insurance Co Ltd KAR:AICL
71 GF Score
Price ₨80.51
GF Value ₨61.14
Valuation Significantly Overvalued
! 3 Warning Signs
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What is Adamjee Insurance Co Beneish M-Score?

Adamjee Insurance Co KAR:AICL +1.13% 71 Beneish M-Score is -2.48 as of Jun. 30, 2026. GuruFocus rates KAR:AICL with a GF Score™ of 71/100 and a GF Value™ of ₨61.14 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 402 Insurance companies, Adamjee Insurance Co ranks worse than 51.49% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.48 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Adamjee Insurance Co's Beneish M-Score or its related term are showing as below:

KAR:AICL' s Beneish M-Score Range Over the Past 10 Years
Min: -6.75   Med: -2.44   Max: -1.87
Current: -2.48

During the past 13 years, the highest Beneish M-Score of Adamjee Insurance Co was -1.87. The lowest was -6.75. And the median was -2.44.

KAR:AICL
71GF Score
Adamjee Insurance Co Ltd KAR:AICL
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Adamjee Insurance Co Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Adamjee Insurance Co for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.8591+0.528 * 1+0.404 * 1.0021+0.892 * 1.0675+0.115 * 0.8021
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0548+4.679 * 0.004702-0.327 * 0.7744
=-2.48

* 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 (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was ₨11,513 Mil.
Revenue was 21310.407 + 28273.362 + 29866.563 + 23468.239 = ₨102,919 Mil.
Gross Profit was 21310.407 + 28273.362 + 29866.563 + 23468.239 = ₨102,919 Mil.
Total Current Assets was ₨0 Mil.
Total Assets was ₨263,842 Mil.
Property, Plant and Equipment(Net PPE) was ₨6,091 Mil.
Depreciation, Depletion and Amortization(DDA) was ₨484 Mil.
Selling, General, & Admin. Expense(SGA) was ₨2,388 Mil.
Total Current Liabilities was ₨0 Mil.
Long-Term Debt & Capital Lease Obligation was ₨345 Mil.
Net Income was 1053.293 + 1219.625 + 1676.014 + 1203.578 = ₨5,153 Mil.
Non Operating Income was -79.297 + -53.087 + -144.253 + 277.424 = ₨1 Mil.
Cash Flow from Operations was -827.343 + 3191.007 + 3196.852 + -1649.311 = ₨3,911 Mil.
 Total Receivables was ₨12,554 Mil.
Revenue was 22478.671 + 31525.351 + 22649.245 + 19755.199 = ₨96,408 Mil.
Gross Profit was 22478.671 + 31525.351 + 22649.245 + 19755.199 = ₨96,408 Mil.
Total Current Assets was ₨0 Mil.
Total Assets was ₨227,616 Mil.
Property, Plant and Equipment(Net PPE) was ₨5,720 Mil.
Depreciation, Depletion and Amortization(DDA) was ₨359 Mil.
Selling, General, & Admin. Expense(SGA) was ₨2,121 Mil.
Total Current Liabilities was ₨0 Mil.
Long-Term Debt & Capital Lease Obligation was ₨384 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(11513.125 / 102918.571) / (12553.915 / 96408.466)
=0.111866 / 0.130216
=0.8591

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(96408.466 / 96408.466) / (102918.571 / 102918.571)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 6090.629) / 263842.151) / (1 - (0 + 5720.413) / 227616.003)
=0.976916 / 0.974868
=1.0021

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=102918.571 / 96408.466
=1.0675

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(358.953 / (358.953 + 5720.413)) / (483.95 / (483.95 + 6090.629))
=0.059044 / 0.073609
=0.8021

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(2388.101 / 102918.571) / (2120.808 / 96408.466)
=0.023204 / 0.021998
=1.0548

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((344.989 + 0) / 263842.151) / ((384.349 + 0) / 227616.003)
=0.001308 / 0.001689
=0.7744

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(5152.51 - 0.787 - 3911.205) / 263842.151
=0.004702

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Adamjee Insurance Co has a M-score of -2.48 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.48 mean?
Adamjee Insurance Co (KAR:AICL) has a Beneish M-Score of -2.48 as of Jun. 30, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Adamjee Insurance Co and its competitors. According to the industry distribution chart, Adamjee Insurance Co ranks #207 out of 402 companies in the Insurance industry, placing it in the top 51.5%.
Is Adamjee Insurance Co's Beneish M-Score too high?
Adamjee Insurance Co's current Beneish M-Score is -2.48. Based on the distribution chart, Adamjee Insurance Co ranks #207 out of 402 companies in the Insurance industry, which is below the industry midpoint. Overall, Adamjee Insurance Co has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Adamjee Insurance Co's Beneish M-Score compare to CB and PGR?
According to the Insurance industry distribution chart, Adamjee Insurance Co ranks #207 out of 402 companies for Beneish M-Score. This places Adamjee Insurance Co in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for an Insurance company?
A good Beneish M-Score depends on the Insurance industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Adamjee Insurance Co and its competitors. Adamjee Insurance Co's current Beneish M-Score is -2.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adamjee Insurance Co stock overvalued right now?
Based on GuruFocus' analysis, Adamjee Insurance Co (KAR:AICL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨61.14, compared to a current price of ₨80.51 — trading 31.7% above its estimated fair value. The current Beneish M-Score is -2.48. Adamjee Insurance Co's overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Adamjee Insurance Co (KAR:AICL), the current Beneish M-Score is -2.48 as of Jun. 30, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Adamjee Insurance Co (KAR:AICL) Overvalued in 2026?

Based on GuruFocus' analysis, Adamjee Insurance Co stock appears to be overvalued. The current stock price of ₨80.51 is trading 31.7% above its estimated GF Value™ of ₨61.14. GuruFocus considers Adamjee Insurance Co to be Significantly Overvalued.

Key valuation signals for KAR:AICL:

  • Beneish M-Score: -2.48
  • GF Value™: ₨61.14 vs. price of ₨80.51 (31.7% above fair value)
  • GF Score™: 71/100 with 3 warning signs

No single metric tells the full story. See the KAR:AICL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Adamjee Insurance Co Business Description

Address Main Boulevard, Gulberg-III, 80/A, Block E-1, Adamjee House Building, Lahore, PAK, 54000
Adamjee Insurance Co Ltd is an insurance company engaged in providing insurance to various categories of businesses, such as Fire and Property, Marine Aviation and Transport, Motor, Accident and Health, and Miscellaneous Insurance. Some of the company's high-risk-value projects include the risk-coverage provision to Petrochemical Factories and Industrial Risk projects. It has five primary business segments for reporting purposes, namely Fire & property, marine aviation & transport, motor, accident & health, and miscellaneous. The company generates the majority of its revenue from the Motor segment.
71GF Score

Get the complete analysis for KAR:AICL

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₨80.51
Price
₨61.14
GF Value