NMS Global (522289)

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

Key Financials

Strengths

• ROCE of 16.15% and ROE of 11.78% show the small capital base is earning positive returns.
• Profit declined only 11.11% despite sales dropping 50.14%, suggesting some cost flexibility.
• The company operates in trading and distribution, which can be asset-light if working capital is managed tightly.

Concerns

• Sales collapsed 50.14%, and the latest quarter shows revenue of just ₹2 Cr with net profit of ₹0 Cr.
• Valuation is rich: P/E of 34.44 and P/B of 15.92 against book value of only ₹5.49.
• Piotroski F-Score of 3/9 signals weak financial health.
• Zero dividend yield, and promoter holding and debt-equity data are unavailable, reducing confidence.

AI Analysis

At first glance, NMS Global is exactly the kind of micro-cap that tempts investors with price action, but it fails my test of understandable value. It is a trading and distribution business, an industry where durable competitive advantage is rare. The latest quarter tells me a lot: sales of only ₹2 crore and net profit of essentially ₹0 crore. Meanwhile, sales are down 50.14% and profits are down 11.11%. A business that is shrinking is hard to value under any method, especially at ₹87.41. I am being asked to pay 34.44 times earnings and 15.92 times book value; book value stands at just ₹5.49. That is a dangerous lack of margin of safety. The Piotroski F-Score of 3/9 is a warning light on financial health. The return on equity of 11.78% and return on capital employed of 16.15% do catch my eye, but they are not enough to justify a premium valuation when the latest quarter has produced no profit. There is no dividend yield, so I receive no cash while I wait. I also cannot see promoter holding or debt-equity data, and part of Buffett and Graham's discipline is knowing who is doing the spending and whether the balance sheet is safe. The 52-week range from ₹49.16 to ₹103.94 shows the stock has moved, but volatility is not value. NMS Global looks like a speculative micro-cap, not a business with an economic moat. In the words of Graham, price is what you pay; value is what you get. I see little value here. I need to see a genuine recovery in sales, meaningful profit, a stronger F-score, and a much lower price before I would even begin to study it further. For now, I pass.

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