Madhusudan Sec. (511000)
Asset PlayScore breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹26.84 |
| Market Cap | ₹29.78 Cr |
| P/E Ratio | 13.64 |
| ROCE | -0.69% |
| ROE | 3.82% |
| Dividend Yield | 0% |
| Profit Growth | 1,000% |
| Debt/Equity | — |
| Sales Growth | 25,600% |
| 52-Week Range | ₹17.6 — ₹29.9 |
| Sector | Finance |
| Book Value | ₹48.55 |
Strengths
- Trades at a 45% discount to book value: P/B of 0.55 against ₹48.55 book value.
- Modest trailing P/E of 13.64 reduces valuation risk if earnings stabilize.
- Piotroski F-score of 6/9 suggests broadly acceptable financial health.
- Latest quarter shows ₹5 Cr sales and ₹4 Cr net profit, a possible inflection from prior lows.
Concerns
- ROE of 3.82% and ROCE of -0.69% indicate weak capital efficiency and limited economic moat.
- Huge sales and profit growth percentages are off a minuscule base and cannot be extrapolated.
- Zero dividend yield means investors get no income while waiting for a re-rating.
- Key data missing: promoter holding and debt/equity; latest quarter figures also appear inconsistent with the stated P/E.
AI Analysis
At ₹26.84, Madhusudan Sec sells for barely 55% of its ₹48.55 book value. In Graham's language, that looks like an asset bargain—provided the stated book is real and the business earns an acceptable return. But as an NBFC, the assets are financial receivables, so asset quality matters more than the discount. The earnings engine is weak: ROE is only 3.82%, and ROCE is -0.69%. The company is earning very little on its capital, and negative ROCE suggests operations don't cover the cost of capital. The P/E of 13.64 is not objectable, but with zero dividend yield, minority shareholders are dependent on book value convergence or a genuine turnaround. The headline growth numbers—sales up 25,600% and profit up 1,000%—look extraordinary, but they start from a tiny base. The latest quarter's ₹5 Cr sales and ₹4 Cr net profit is encouraging, yet it seems inconsistent with the trailing P/E and needs verification. A Piotroski F-score of 6/9 is okay but not a strong signal. I cannot call this a quality compounder. It is an asset play with a possible catalyst if management can deploy the book at higher returns. The missing promoter holding and debt/equity data bother me. If book value is trustworthy, there is margin of safety; but with ROE this low, the discount may be deserved. I would wait for sustained profitability before acting.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer