Cubical Finan (511710)

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

Key Financials

Strengths

• Trades below book value: ₹2.13 price versus ₹2.39 book value, a ~11% discount (P/B 0.89).
• Tiny ₹14 Cr market cap means a small absolute capital outlay with potential for outsized returns if assets are realized.
• ROCE of 4.56% suggests some meagre operating return from the existing asset base.
• Near the lower end of its 52-week range (₹1.68–₹3.80), expectations appear already subdued.

Concerns

• Latest quarter shows ₹0 Cr sales and ₹0 Cr profit; income generation has effectively stopped.
• Profit growth of -100% and a P/E of 339 reflect a collapsed earnings base, making the valuation unreliable.
• ROE of 0.32% and Piotroski F-score of 3/9 point to very weak financial health and possible balance-sheet deterioration.
• No dividend, no promoter holding disclosure, and insufficient data for a FairStock Score reduce confidence.

AI Analysis

At ₹2.13, this is exactly the kind of stock Graham would call a statistical bargain—if the numbers are trustworthy. The share trades at 0.89 times book value of ₹2.39, giving a margin of safety on the balance sheet. But a Graham test is not just cheapness; it is earning power. Here the earning power has collapsed. Sales fell 8.11%, profit growth is -100%, and the latest quarter shows ₹0 Cr revenue and ₹0 Cr profit. A P/E of 339 is meaningless when earnings are essentially nil. With ROE of 0.32% and ROCE of 4.56%, the business is earning only a token return on capital, far below what a good operating company should deliver. This is a tiny ₹14 Cr market cap NBFC, so I cannot hide behind size; small companies can be excellent if they have a niche, but I see no moat here, only a shell-like financial statement. The Piotroski F-score of 3 out of 9 adds to my caution—weak profitability, weak quality, and possible balance-sheet stress. No dividend, no growth, no promoter data disclosed. It may be an asset play: if the book value is real and recoverable, the downside is limited. But in an NBFC, book value depends on loan quality; zero latest-quarter income makes me wonder whether it is winding down or simply dormant. I would demand more disclosures and proof that assets are not impaired. In Buffett's terms, this may be a cigar butt with one puff left—cheap but perhaps not attractive. I would only consider it within a basket of such value plays, not as a core holding.

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