Kartik Invest. (501151)

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

Key Financials

Strengths

• Low headline P/E of 6.03 and PEG of 0.01 make the stock optically cheap on reported earnings.
• Latest quarter net profit of ₹5 Cr on ₹6 Cr sales implies a strong reported margin of about 83%.
• ROE of 120.25% shows high return on a very small equity base, if the reported earnings quality is confirmed.
• Book value per share of ₹173 provides some tangible asset backing, though the stock trades at 4.32 times book.

Concerns

• ROCE of -0.69% contradicts the 120.25% ROE; core operations may be destroying capital or profits may be non-operating/exceptional.
• Sales growth is 0.00% while profit grew 1000%; such a mismatch is a red flag for sustainability.
• Price of ₹748 is below the stated 52-week low of ₹1,087.80, raising questions about data integrity and liquidity.
• No dividend and promoter holding as N/A leave minority investors with little transparency or compensation while waiting.

AI Analysis

At ₹748, Kartik Invest looks like a classic statistical bargain at first glance: P/E of only 6.03 and a PEG of 0.01. But as Graham taught, numbers are a starting point, not a conclusion. The market cap is just ₹18 crore, so this is a micro-cap, and the share price is below the stated 52-week low of ₹1,087.80—that alone makes me question the reliability of this quote and the liquidity of the stock. The reported ROE of 120.25% is eye-catching, but it is built on a very thin equity base: book value is ₹173 per share, yet the price is ₹748, so I am paying 4.32 times book. More troubling, ROCE is -0.69%. How can a company show 120% ROE and negative ROCE at the same time? It suggests the operating business is not earning its cost of capital, and the profit leap is probably non-operating or exceptional. The Piotroski F-score of 5/9 reinforces my caution; the financial signals are only middling. Sales are completely flat at ₹6 crore, while profit jumped 1000% to ₹5 crore in the latest quarter. That kind of margin expansion without revenue growth is a red flag, not a sign of durable competitive advantage. There is no dividend, so I am not being paid to wait. Promoter holding is N/A, which adds another layer of opacity. Graham would demand a margin of safety; here the earnings multiple appears low, but only if the ₹5 crore profit is sustainable. One quarter's profit exceeding the entire book value tells me the equity cushion is inadequate for a financial-services company. This looks less like a wonderful business at a fair price and more like a micro-cap with uncertain earnings quality. I will wait until I see a consistent track record, real revenue growth, and evidence that the reported profits come from operations, not from noise.

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