Ushakiran Fin. (511507)

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

Key Financials

Strengths

• Trades at ₹35 vs book value of ₹82.45, a significant discount of about 58% to stated book.
• Piotroski F-Score of 7/9 suggests financial health is not deteriorating sharply.
• Low absolute market cap of ₹9 Cr may offer niche flexibility if assets are liquidated or redeployed.
• Current price is near the lower end of the 52-week range (₹33.71 - ₹60.50), reducing entry risk somewhat.

Concerns

• Zero sales and zero net profit in latest quarter; no earnings engine to justify the business as a going concern.
• ROE is negative at -0.06%, and ROCE of 1.65% shows capital is barely earning anything.
• No dividend, no growth, and promoter holding not available; unclear management intent and governance.
• Debt/equity not available for an NBFC, so actual leverage and asset quality cannot be assessed.

AI Analysis

Looking at Ushakiran Fin, the first thing I see is a very small NBFC with a market cap of just ₹9 crore, trading at ₹35 against a book value of ₹82.45. That means I am buying a rupee of stated net assets for roughly 42 paise. On a pure price-to-book basis, this looks like an asset play, not a compounding machine. But as Graham taught me, a bargain can be a value trap if the assets aren't real, productive, or under honest stewardship. The operating picture is almost blank: latest quarter sales and net profit are both ₹0, sales growth and profit growth are 0%, and there is no dividend. A company with no earnings cannot be valued on a P/E basis, and the P/E is stated as 0.00 because there is nothing to multiply. Return on equity is -0.06%, meaning the company is earning essentially nothing on its book value. ROCE of 1.65% is far below what I would expect from a quality financial business. The Piotroski F-Score of 7/9 gives me some comfort that the balance sheet isn't collapsing, but with debt/equity not available and promoter holding not available, I cannot assess leverage or alignment. This is not a wonderful business; it has no clear moat, no growth, and no income. It may be a dormant entity whose value lies in assets. The margin of safety is the discount to book, but I must ask whether the book value is realizable and whether management will unlock it. Until I see profits, dividends, or a clear plan, this remains a speculative asset play rather than an investment I can confidently back.

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