India Cem. Cap. (511355)

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

Key Financials

Strengths

• Piotroski F-Score of 6/9 is a mild positive on financial health.
• Reported 450% profit growth shows momentum, even if from an infinitesimal base.
• The stock has re-rated strongly, trading at a 52-week high of ₹22.50 versus a low of ₹9.14.
• Book value of ₹8.26 provides some tangible cushion, though the current price stretches far above it.

Concerns

• ROE of 0.99% and ROCE of 1.31% are far below an acceptable return for an NBFC.
• P/E of 111.25 and P/B of 2.72 are steep, especially with book value at ₹8.26 and no dividend.
• Sales shrank -3.97% and latest quarter net profit is ₹-0 Cr, so the 450% profit growth is not current operating reality.
• Promoter holding and debt/equity are N/A; for a sub-₹50 Cr NBFC, this opacity is a red flag.

AI Analysis

At ₹22.50, India Cem. Cap. has the appearance of a turnaround: profit growth of 450% and a stock that has risen from ₹9.14 to its 52-week high. But as Graham said, "In the short run, the market is a voting machine; in the long run, it is a weighing machine." The weight here is light. This is a ₹49 crore market-cap NBFC with quarterly sales of just ₹1 crore and a net profit of ₹-0 crore in the last quarter. A P/E of 111.25 tells me the market is paying for a future that the current numbers do not yet support. The PEG of 0.25 is seductive, but that only divides an already high P/E by a 450% base-effect "growth" figure; it does not signal value. Return on equity is 0.99% and ROCE is 1.31% – far below what I would demand from a lender, especially one with no dividend. The 450% profit growth is real only as a percentage; with a tiny earnings base, it is not evidence of durable earning power. The P/B of 2.72 against book value of ₹8.26 means I would pay more than two and a half times book for a business earning less than one percent on that book. That is not value; it is hope. The Piotroski F-Score of 6 is a mild positive, but it does not compensate for declining sales of -3.97% and a loss in the latest quarter. Debt/equity and promoter holding are not available, and in a small NBFC, lack of transparency is a red flag. I would not buy this as a value investment. If a true turnaround develops – if ROE climbs materially, quarterly profit turns positive consistently, and loan losses stay low – then I might study it again. For now, the margin of safety is absent. I will simply say no.

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