Avasara Finance (511730)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹31.14 |
| Market Cap | ₹24.47 Cr |
| P/E Ratio | 0 |
| ROCE | -20.18% |
| ROE | -47.05% |
| Dividend Yield | 0% |
| Profit Growth | -1,000% |
| Debt/Equity | — |
| Sales Growth | 0% |
| 52-Week Range | ₹14.8 — ₹32.55 |
| Sector | Finance |
| Book Value | ₹4.27 |
Strengths
- Positive book value of ₹4.27 per share provides a tangible asset base
- As an NBFC, it holds a regulated financial services license that could have potential value
- Small market cap of ₹24 crore allows for a large upside if a successful turnaround occurs
- Trading near the 52-week high of ₹32.55 indicates some market interest or optimism
Concerns
- Zero sales and latest quarterly net loss of ₹1 crore mean no active income-generating business
- ROE of -47.05% and ROCE of -20.18% show severe capital destruction
- Piotroski F-Score of 2/9 signals weak financial health and possible distress
- Price-to-book of 7.29 is extremely expensive for a loss-making company with no growth
AI Analysis
When I look at Avasara Finance, I see a business that fails almost every test I apply. The latest quarter shows zero sales and a net loss of ₹1 crore. Over the year, return on equity is -47% and return on capital employed is -20%, meaning this NBFC is destroying shareholder value, not creating it. The Piotroski F-Score of 2 out of 9 reinforces the picture of poor financial health. Now look at the price: ₹31.14, close to the 52-week high, against a book value of just ₹4.27. That gives a price-to-book of 7.29. In what rational world does a company with no revenue and shrinking profits trade at over seven times its net worth? The market cap of ₹24 crore suggests a speculative penny stock, not a compounder. There is no dividend, no sales growth, and profit growth is -1000%. This is the kind of situation Benjamin Graham warned about: buying hope, not assets. I see no moat, no pricing power, and no evidence of a capable management. The positive book value is the only real asset, but at this price you are paying a huge premium for a pile of problems. As a value investor, I require a margin of safety. Here, there is none. I would politely pass.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer