HB Leasing &Fin. (508956)

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

Key Financials

Strengths

• Positive book value of ₹2.05 per share provides at least a small stated equity cushion.
• Tiny market cap of ₹21 Cr means a relatively small absolute improvement in operations could have a visible impact.
• Stock is trading near its 52-week high of ₹18.82, indicating speculative market interest or momentum.
• No dividend payout currently avoids any further cash drain on the business.

Concerns

• Negative ROE of -14.36% and ROCE of -6.93% indicate clear value destruction.
• Sales are down 66.67%, profit growth is -350%, and the latest quarter shows ₹0 Cr sales and ₹-0 Cr net profit.
• Piotroski F-Score of 2/9 reflects very poor financial health.
• P/B of 9.18 against book value of ₹2.05 leaves no margin of safety at the current price.

AI Analysis

I'll start with the one number that matters most to me as a prospective owner: return on equity. HB Leasing & Fin. earns -14.36% on equity. That means every rupee retained in the business is shrinking, not growing. Return on capital employed is also negative at -6.93%, so the company is not even generating enough to cover the cost of running the business. With sales down 66.67% and profit growth at -350%, I see a business that is moving in the wrong direction. In the latest quarter, reported sales are ₹0 Cr and net profit is ₹-0 Cr. There is no earnings engine here. Now compare the price to what I would get. The company trades at ₹18.82, while book value is just ₹2.05. That's a price-to-book ratio of 9.18 for a negative-ROE business. Graham would call this speculation, not investment. The Piotroski score is 2 out of 9, a clear warning flag on financial health. There is no dividend yield, so I can't wait for the market to realise value while being paid. Debt/equity is not disclosed or not meaningful; for an NBFC, that is not a comfort. Some might argue that a tiny market cap of ₹21 Cr and a stock at the top of its 52-week range mean something is changing. But I don't invest based on charts or hope. I invest based on cash flows, margins, and balance sheets. I see none of the three here. The price is at its 52-week high of ₹18.82 while the fundamentals are near zero. That kind of divergence usually ends badly. This may be a turnaround candidate one day, but there is no evidence of a turn in these figures. Without a moat, without earnings, and with a negative Piotroski score, this is exactly the kind of stock I pass on. The price might do anything, but value is not visible. I'll keep my capital and wait for better odds.

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