Jayabharat Cred. (501311)

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

Key Financials

Strengths

• Market capitalization is only ₹5 Cr, so the stock price already reflects substantial pessimism after falling from ₹33.07.
• ROE is still positive at 1.87%, suggesting some residual equity earnings power, however tiny.
• Latest quarter net loss is near ₹0 Cr, indicating no major operational cash burn at the absolute level.
• The stock is near the lower end of its 52-week range, so expectations appear low.

Concerns

• Latest quarter sales are ₹0 Cr and net profit is -₹0 Cr, meaning the NBFC has no visible lending or revenue activity.
• Piotroski F-Score is 2/9, indicating very poor financial health.
• Book value, P/B, debt/equity, and promoter holding are all N/A, making solvency and insider alignment impossible to assess.
• Profit growth is -21.74%, ROCE is 0%, and dividend yield is 0%, leaving no earnings or income cushion for shareholders.

AI Analysis

Let me begin with Graham's first rule: an investment operation requires thorough analysis, protection of principal, and an adequate return. Jayabharat Cred. fails all three. The latest quarter shows sales of ₹0 crore and a net loss of ₹0 crore. For an NBFC, zero revenue means the lending machine has stopped. A business that cannot generate interest income cannot compound capital. The numbers that follow are equally discouraging: sales growth is 0%, profit growth is -21.74%, ROCE is 0%, and the Piotroski F-score is a miserable 2 out of 9. ROE of 1.87% is negligible; with a market cap of only ₹5 crore, even small absolute losses can hurt. The market price has dropped from ₹33.07 to ₹10.45, but Mr. Market's mood is not a valuation. In fact, I cannot compute a sensible valuation at all: P/E is 0.00, book value is N/A, debt/equity is N/A, and promoter holding is N/A. The available disclosure is insufficient. Graham would say that the lack of information is itself a red flag. A low price is only a margin of safety when you know the value of the underlying assets. Here I don't even know the book value of this NBFC, so I cannot say whether ₹5 crore is cheap or expensive. This is not a wonderful business at a fair price; it is an unproven business at an unverifiable price. It might be a shell, it might be an asset play, it might be a turnaround. But without audited numbers, loan book quality, and evidence of renewed lending, I cannot classify it as an investment. I would rather miss the opportunity than risk permanent capital on a company that gives me no facts.

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