Key Corp (507948)

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

Key Financials

Strengths

• Reported sales growth of 147.58% and profit growth of 140.15% show strong recent momentum.
• Piotroski F-Score of 7/9 indicates improving financial health across multiple fundamentals.
• P/B of 1.42 with book value of ₹110.41 offers some asset backing for the ₹156.55 price.
• Latest quarter is profitable with ₹2 Cr net profit on ₹2 Cr sales.

Concerns

• ROE of 1.48% and ROCE of 6.54% reflect weak earning power; returns are poor relative to capital employed.
• P/E of 45.11 is expensive for a business with trailing profit of roughly ₹2 Cr.
• Zero dividend yield; retained earnings are being deployed at sub-par returns.
• Debt/Equity and promoter holding are N/A, leaving leverage and insider alignment unverifiable.
• Price is at the 52-week high of ₹156.55, leaving little margin of safety if growth stalls.

AI Analysis

First, don't be dazzled by percentage strings. Key Corp has reported sales growth of 147.58% and profit growth of 140.15%, but those percentages come off a tiny base—the latest quarter shows sales of just ₹2 Cr and net profit of ₹2 Cr. A ₹96 Cr market cap with trailing earnings of roughly ₹2.1 Cr implies a P/E of 45.11. That is a rich price, not a margin of safety; it assumes the recent momentum continues for many years. Book value per share is ₹110.41, so a P/B of 1.42 gives some asset cushion. But book value only matters if it earns an acceptable return. Here ROE is a weak 1.48% and ROCE is 6.54%. An NBFC earning less than a fixed deposit on its equity is not compounding wealth. The zero dividend means all retained earnings are deployed at sub-par returns; I prefer management that returns capital when it cannot invest at high rates. The Piotroski F-Score of 7/9 is encouraging in the short run, and the PEG ratio of 0.31 makes the growth look inexpensive—if that growth is durable. But in a small NBFC, a single large quarter can distort annual comparisons. Absolute profit of ₹2 Cr is tiny; one bad loan can erase it. Missing data bothers me more: Debt/Equity is N/A and promoter holding is N/A. For a financial company, capital structure and insider ownership are essential; I cannot evaluate risk without them. The stock is at ₹156.55, the top of the 52-week range, with no dividend and a thin margin of safety. As Graham said, price is what you pay, value is what you get. At this price, with this earnings power, I get very little. Let the market prove the growth; I'll wait.

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