Fedders Holding (511628)
TurnaroundFairStock Score: 47/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹868.35 |
| Market Cap | ₹17,472.59 Cr |
| P/E Ratio | 14.28 |
| ROCE | 7.37% |
| ROE | -0.02% |
| Dividend Yield | 0% |
| Profit Growth | 887.6% |
| Debt/Equity | — |
| Sales Growth | -10.21% |
| 52-Week Range | ₹28.57 — ₹868.35 |
| Sector | Finance |
| Book Value | ₹19.26 |
Strengths
- Latest quarter is profitable: ₹37 Cr net profit on ₹80 Cr sales, implying strong current margin.
- Piotroski F-Score of 6/9 points to reasonably healthy short-term financials.
- Headline P/E of 14.28 and PEG of 0.02 could become attractive only if the 887.6% profit growth is repeatable.
- NBFC business can have operating leverage once the loan or investment book stabilises.
Concerns
- P/B of 45.09 with ROE of -0.02% means price is wildly ahead of earning power on book value.
- Sales declining 10.21% shows the topline is not supporting the profit surge.
- P/E and quarterly profit do not reconcile, suggesting exceptional items or base effects.
- No dividend, and promoter holding/D/E are not disclosed, leaving governance and leverage unknown.
AI Analysis
Take a deep breath. Fedders Holding is the kind of stock that tests discipline. The market values this NBFC at ₹17,473 crore, but the equity underneath is just ₹19.26 per share. I am being asked to pay 45.09 times book value for a company whose return on equity is -0.02%. Graham would call that a price with no margin of safety. The reported P/E of 14.28 looks reasonable, yet it does not reconcile with the latest quarter: ₹80 crore of sales and ₹37 crore of net profit. Annualise that profit and compare it to a ₹17,473 crore market cap; the earnings yield is far lower than the 7% the P/E implies. That tells me the 887.6% profit growth is probably a low-base or exceptional-item effect, not normalised earning power. Sales are still declining by 10.21%, and there is no dividend to while away the wait. The Piotroski score of 6/9 at least suggests the company is not falling apart financially, and the latest quarter is profitable. But one quarter does not make a quality NBFC. ROCE of 7.37% barely clears the cost of capital, and with D/E and promoter holding undisclosed, I cannot assess governance or leverage risk. The 52-week move from ₹28.57 to ₹868.35 has already priced in an ideal outcome. If this is a true turnaround, it must prove itself by building book value and producing positive, consistent ROE. Until then, I watch from the sidelines.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer