United Leasing (507808)

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

Key Financials

Strengths

• Trades below book value: P/B of 0.97 with price ₹21.58 vs book value ₹22.30
• Sales growth of 14.35% shows some top-line momentum
• Piotroski F-Score of 7/9 indicates improving fundamental health
• ROCE of 4.54% is positive, showing modest capital productivity

Concerns

• ROE is negative at -2.07% and latest quarter net profit is ₹0 Cr, so no genuine earnings
• P/E is 0.00 and dividend yield is 0.00%, offering no income or profit backing
• Current price is below the stated 52-week range of ₹30-₹48.55, suggesting illiquidity or data issues
• Lack of promoter holding and debt/equity data makes governance and leverage unassessable

AI Analysis

This is the kind of stock that screens well for deep value, but Benjamin Graham warned us that a cheap price is never a substitute for understanding the business. United Leasing is a ₹6 crore microcap in the textile products business, a sector with thin moats and intense competition. At ₹21.58, it trades just below book value of ₹22.30, a P/B of 0.97. That gives some apparent asset protection. But the asset must earn, and here it does not. ROE is -2.07%, and the latest quarter shows net profit at ₹0 crore. The P/E is effectively zero because there are no meaningful earnings to capitalize. ROCE of 4.54% is positive but insufficient. Sales grew 14.35%, which is encouraging, but the 140% profit growth figure is an illusion born of a tiny base. Piotroski F-Score of 7/9 suggests some improvement, yet I cannot rely on it alone. There is no dividend. The 52-week range of ₹30 to ₹48.55 while the stock is at ₹21.58 is a red flag for liquidity and data reliability. I also have no promoter holding figure and no debt-to-equity ratio. In the absence of that information, I cannot judge governance or financial risk. This is a possible asset play, not a business I would call a compounder. If management can convert its ₹22.30 of book value into real earnings, the stock could rerate. But value investing requires evidence, not hope. Until ROE turns positive and consistent profits appear, this remains a pass. Tempting at a discount, but not a clear margin of safety.

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