Sera Investments (512399)

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

Key Financials

Strengths

• Trades at a deep discount to book value: P/B 0.35 against book value of ₹63.82 per share
• Low headline P/E of 10.27 with reported profit growth of 479.36%
• Latest quarter shows strong reported sales of ₹25 Cr and net profit of ₹20 Cr
• Piotroski F-Score of 7/9 suggests recent fundamental/operating improvements

Concerns

• Low ROE of 5.74% and ROCE of 2.29% indicate poor returns on capital despite high growth
• Current price ₹22.22 is below the stated 52-week low of ₹31.31, signaling possible data inconsistency or severe stress
• Zero dividend yield offers no compensation while waiting for value realization
• Critical information missing: promoter holding, debt/equity ratio, and asset quality details for an NBFC

AI Analysis

When I look at Sera Investments, the first number that grabs me is book value per share of ₹63.82 against a price of ₹22.22. That is a 65% discount to net worth. Graham would call this a cigar-butt, an asset play. But for an NBFC, book value is only as good as the loans on the books. With debt/equity not reported and promoter holding not available, I cannot perform my usual stress test. The quarterly numbers—sales ₹25 Cr and net profit ₹20 Cr—are startling, as is the profit growth of 479%. Yet ROE is only 5.74% and ROCE a paltry 2.29%. A business earning low returns on tangible capital is not a great compounding machine, no matter how fast the income statement is growing. The P/E of 10.27 is cheap on the surface, but if this quarter's profit is one-off, the real earnings yield is much lower. The Piotroski score of 7 is mildly encouraging, but it cannot tell me about asset quality or hidden leverage. Also notice the odd 52-week range: the price sits below the stated low of ₹31.31. That is a red flag—data may be unreliable. A zero dividend means I am completely dependent on asset values being realized or earnings being sustained. This is not a wonderful franchise with an economic moat; it is a cheap financial asset with high growth and low returns. I would only consider it as a small speculative position in an asset-play basket, after checking the loan book, capital adequacy, and promoter history. If the book value is real and management is honest, the potential is large. If not, a 0.35 P/B can fall further. The figures alone are not enough.

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