Quest Capital (500069)
Score breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹385.5 |
| Market Cap | ₹392.14 Cr |
| P/E Ratio | 6.52 |
| ROCE | 2.2% |
| ROE | 2.45% |
| Dividend Yield | 0.96% |
| Profit Growth | 1,000% |
| Debt/Equity | — |
| Sales Growth | 3,934.33% |
| 52-Week Range | ₹222 — ₹385.5 |
| Sector | Capital Markets |
| Book Value | ₹1,632.81 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
At ₹385.50, with book value of ₹1,632.81, I am buying a rupee of assets for under 24 paise. That is the kind of margin of safety Graham would appreciate. But a bargain is only a bargain if management can eventually earn a decent return on those assets, and here the numbers give me pause. Return on equity is just 2.45%; return on capital employed is 2.20%. This is not a wonderful business. The company earns far too little on its large asset base. The latest quarter shows ₹27 Cr sales and ₹21 Cr net profit—an extraordinary margin, but such figures can be misleading when the base is tiny. Sales growth of 3,934% and profit growth of 1,000% look spectacular, but in capital market services, a single quarter can distort annual comparisons. The market cap is ₹392 Cr while P/E is 6.52, so the price already discounts poor earnings quality. The Piotroski F-score of 7/9 suggests the balance sheet is not deteriorating, and debt/equity is not meaningful in the data given. Still, with a dividend yield of only 0.96%, I am not being paid to wait. This stock is a classic asset play: deep discount to stated book value, but low returns on that book. If Quest Capital can deploy its capital more profitably, the upside is substantial; if not, the discount may stay or widen. Promoter holding is not disclosed in the data I have; that is a red flag for a minority shareholder. I would need to see sustained improvement in ROE and a clear catalyst before acting. As Buffett says, it is far better to buy a wonderful company at a fair price than a fair company at a wonderful price. Here, the price is attractive, but the business quality is not.
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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer