R R Fin. Cons. (511626)

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

Key Financials

Strengths

• Price-to-book of 0.47 means the market price is less than half of stated book value of ₹38.46.
• Latest quarter shows a 25% net margin: ₹2 Cr profit on ₹8 Cr sales.
• Piotroski F-Score of 7/9 points to improving financial health, despite weak profitability.
• Sales growth of 56.41% shows some business expansion, even if off a small base.

Concerns

• ROE of 0.57% is exceptionally low, so the book value is earning almost nothing for shareholders.
• The stock has fallen roughly 93% from its 52-week high of ₹263.70 to ₹18, suggesting distress or severe de-rating.
• Promoter holding, debt/equity, and governance data are unavailable, making informed judgment difficult.
• No dividend and a market cap of just ₹20 Cr make this a highly illiquid microcap with very limited safety net.

AI Analysis

At ₹18, R R Fin Cons is a microcap NBFC with a market cap of just ₹20 Cr. The first thing that catches my eye is not the P/E of 10.91 but the price-to-book of 0.47: I am paying only 47 paise for every rupee of stated book value of ₹38.46. Graham would nod, but caution that in lending, book value is only as good as the loan book. A 0.57% ROE tells me the company earns almost nothing on that book; ROCE of 7.63% is also below what I expect from a quality financial business. The latest quarter has sales of ₹8 Cr and net profit of ₹2 Cr, a 25% margin, and sales growth is 56.41% with profit growth of 1000%. That kind of growth on a tiny base can be a statistical illusion, so I cannot extrapolate it. The Piotroski F-score of 7/9 is encouraging and suggests some balance-sheet improvements, but I want several years of data, not one quarter. The share has fallen from ₹263.70 to ₹18, roughly 93%, and such destruction usually signals distress, hidden losses, or loss of confidence. There is no dividend, promoter holding is undisclosed, and debt/equity is unavailable. Without leverage details and governance clarity, the margin of safety is thinner than the P/B implies. This is not a wonderful business; it is a cheap asset. I would view it only as an asset play, and only after independently auditing the book value, recoverability of loans, and capital adequacy. If the book is real, value may exist; if impaired, the discount will widen. I would stay small or wait for more evidence.

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