AastamangalamFin (511764)

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

Key Financials

Strengths

• Earnings yield is approximately 15.4% at P/E of 6.49, attractive on the surface.
• ROE of 17.99% is respectable relative to the 1.51 P/B, if earnings can stabilise.
• Latest quarter is profitable: sales ₹4 Cr and net profit ₹2 Cr, showing no immediate distress.
• Market cap of ₹39 Cr offers small-company optionality, though it cuts both ways.

Concerns

• Sales growth of -16.71% and profit growth of -25.39% indicate a shrinking business.
• Piotroski F-score of 3/9 points to weak financial health and possible operational deterioration.
• No dividend, no promoter holding data, and no debt/equity disclosure create a transparency gap.
• P/B of 1.51 with falling earnings offers a thin margin of safety, not a classic deep-value bargain.

AI Analysis

As a value investor, I am taught to buy a dollar of assets for 50 cents. Here I am paying ₹39.34 for ₹26 of book value, or 1.51 times book. Not a bargain in the Graham sense. But the company earns 17.99% ROE, and at a P/E of 6.49, the earnings yield is over 15%. The market is clearly not paying for rapid growth; in fact, sales are down 16.71% and profits are down 25.39%. That is the first warning. The latest quarter shows sales ₹4 crore and net profit ₹2 crore, so it remains profitable. But one quarter cannot offset the larger trend. The Piotroski F-score is only 3 out of 9, which tells me the financial picture is deteriorating: weaker margins, inefficient operations, or balance-sheet strains are likely. As an NBFC, AastamangalamFin depends on trust, low funding costs and good lending discipline. With no debt/equity ratio disclosed, no promoter holding data, and no dividend, I cannot judge alignment or risk. Do I see a moat? No. A ₹39 crore NBFC in India competes against banks and large NBFCs. Scale matters in this business. A tiny lender has no pricing power unless it has a niche, and the numbers don't prove one. This is more a turnaround candidate than a franchise. Buffett once said turnaround seldom turns; Graham would demand more evidence. At 1.51 times book with declining earnings, the margin of safety is thin. I'd need either a lower price closer to book value, or several quarters of stabilised revenue and profit, before acting. I will watch, not buy.

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