AD Manum Finance (511359)

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

Key Financials

Strengths

• Trades at a 33% discount to book value (P/B 0.67, book value ₹100.70)
• Low P/E of 4.17 suggests market pessimism and possible undervaluation
• Positive ROE of 11.13% and ROCE of 14.72% indicate some capital efficiency
• Latest quarter remains profitable with sales ₹3 Cr and net profit ₹1 Cr

Concerns

• Profit growth dangerously negative at -44.49%, with sales declining 4.79%
• Piotroski F-Score of 3/9 signals weak financial health
• No dividend yield means zero income while waiting for value realisation
• Critical data missing: debt/equity, promoter holding, and detailed asset quality

AI Analysis

At ₹67.71 with book value of ₹100.70, AD Manum Finance sells at 0.67 times book. That catches any Graham student's attention. But my first question is always: is the book real? This is an NBFC, so assets are financial receivables carrying credit risk. Without debt/equity, promoter holding, or detailed asset quality disclosure, I cannot fully trust the balance sheet. The income statement is disquieting: sales down 4.79% and profit down 44.49%. A P/E of 4.17 looks cheap, but falling earnings make trailing multiples a mirage. The latest quarter shows sales of only ₹3 Cr and net profit of ₹1 Cr; annualised, that is far below the profit implied by the P/E, so reported earnings may be volatile or non-recurring. The Piotroski F-score of 3 out of 9 strengthens my hesitation—this company fails several fundamental health tests. ROE of 11.13% and ROCE of 14.72% are acceptable for a small lender, but they do not indicate a durable competitive moat. There is zero dividend yield, so I receive no cash while waiting for value to unlock. The price is above the 52-week low but below the high. This looks like a potential asset play: the stock trades below book, but there is little evidence of franchise strength or earnings stability. In Graham's terms, I need margin of safety in both assets and earnings. Here, the asset margin exists on paper, but the earnings margin is deteriorating. I would demand more disclosure, stabilisation of profits, and proof that the loan book is worth its stated value before committing capital. Patience is essential.

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