NDA Securities (511535)

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

Key Financials

Strengths

• Positive book value of ₹21.86 per share offers some asset coverage despite the high P/B.
• Trailing twelve-month P/E is positive, indicating rare annual profitability despite the recent quarterly loss.
• ROCE of 14.96% exceeds ROE, suggesting possible operational efficiency if capital structure is optimized.
• Small market cap of ₹26 Cr means low absolute capital at risk, though liquidity is also limited.

Concerns

• Sales growth deeply negative at -26.67%, indicating a shrinking business.
• Profit growth of -533.33% and latest quarterly loss of ₹1 Cr show rapid deterioration in earnings.
• Piotroski F-score of 3/9 signals poor financial health and likely fundamental stress.
• Zero dividend yield and undisclosed promoter holding raise governance and return-for-shareholders concerns.

AI Analysis

Looking at NDA Securities, I see a business that fails most of the tests I apply. The price of ₹43.96 implies a market cap of ₹26 Cr, but the company earns almost nothing—just a 4.10% return on equity. At a P/E of 142 times, you are paying an extraordinary multiple for negligible earnings, while the latest quarter shows a net loss of ₹1 Cr on sales of just ₹1 Cr. Sales have contracted by over 26%, and profits have deteriorated by more than 500%, meaning the trajectory is clearly a losing one. The Piotroski score of 3 out of 9 is a red flag for financial health, and with no dividend, shareholders are not being paid to wait. Yes, the book value is ₹21.86, but paying twice that for a sub-5% ROE is not value investing—it is hope. The ROCE of 14.96% seems decent, but given the tiny base and falling sales, I can't trust it as a sustainable edge. Without promoter holding details, I can't even see if management's interests are aligned with mine. This is a small-cap financial services firm in a hard place, and the market seems to be pricing in a turnaround that has no evidence. Graham would say that 'the investor's chief problem—and even his worst enemy—is likely to be himself.' Here, the numbers themselves are shouting caution. I'd rather watch from the sidelines. If the company can stabilize sales, return to profitability, and demonstrate prudent capital allocation, I might take a closer look. But as it stands, this is not a business I can value with any confidence, and the margin of safety is nil.

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