Futuristic Sec. (523113)

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

Key Financials

Strengths

• Piotroski F-Score 6/9 suggests basic financial health with no glaring accounting red flags.
• Reported profit growth of 300%, though on a negligible base, is directionally positive.
• ROCE is positive at 0.72%, so the company is not burning cash.
• Tiny ₹5 Cr market cap means little analyst coverage; a genuine turnaround could be mispriced if it materialises.

Concerns

• P/E of 754 and P/B of 3.23 against an ROE of 0.07% imply valuation is far ahead of actual earning power.
• Latest quarter sales and net profit are both ₹0 Cr, and sales growth is 0%, so there is no visible operating momentum.
• No dividend and no promoter holding disclosure leave shareholders without income or governance clarity.
• The price of ₹23.26 is below the stated 52-week range low of ₹32.23, indicating either a sharp fall or unreliable data.

AI Analysis

A business can be wonderful only if its numbers tell a coherent story. Here they don't. Futuristic Sec. is a ₹5-crore market-cap NBFC selling at ₹23.26 against book value of ₹7.20 — that's 3.23 times book. For that premium, you expect a high return on equity. Instead, ROE is 0.07% and ROCE is 0.72%. The P/E of 754 implies an earnings yield of about 0.13%, roughly one-eighth of what an Indian fixed deposit pays. With zero sales growth, zero dividend, and latest quarterly sales and net profit both zero, there is no operating engine to justify the price. Moat? None visible. This is a micro-cap lender in a crowded NBFC space; without pricing power or scale, it cannot have a durable competitive advantage. The only green shoots: Piotroski F-Score is 6/9, and reported profit growth is 300%. But 300% growth from a near-zero base is a rounding error, not a trend. PEG of 2.51 says even after adjusting for that growth, the stock is not cheap. Graham would ask: is there a margin of safety? At 3.23 times book for a 0.07% ROE business, no. If book value grows slowly, shareholders earn nothing; if it doesn't, the downside is large. The 52-week range shown is ₹32.23-40.20, yet the price is ₹23.26 — either the stock has collapsed through its own low or the data is unreliable; neither gives me comfort. I'd file this under too hard. It may someday become a turnaround, but a value investor must buy when facts are clear, not on hope. The price is a speculation, not an investment. I need positive quarterly earnings, real loan growth, and proof that capital is being deployed profitably before I'd even look at this balance sheet. As Buffett says, it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. This is neither.

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