Intec Capital (526871)

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

Key Financials

Strengths

• Trades at a discount to book value: P/B of 0.92, with price ₹16.45 against book ₹17.80.
• Piotroski F-Score of 7/9 indicates improving operational and balance-sheet health.
• Low P/E of 3.54 and PEG of 0.02 point to a very cheap valuation relative to reported earnings and growth.
• ROE of 15.69% is respectable, and reported sales growth of 373% with profit growth of 40% show momentum.
• Small market cap of ₹30 Cr means low expectations are already built into the price.

Concerns

• Latest quarter shows sales of only ₹2 Cr and net profit of roughly ₹0 Cr, so earnings power is not yet proven.
• ROCE of just 2.80% suggests weak core capital productivity for an NBFC.
• Debt/Equity and promoter holding are not disclosed, making balance-sheet and governance risk impossible to assess.
• Zero dividend and tiny market cap mean no income support and likely poor liquidity.

AI Analysis

At first glance, Intec Capital catches my eye the way a beaten-down asset often does. The market price is ₹16.45, while book value is ₹17.80, so I am buying at a discount to stated net assets. The reported P/E of 3.54 and PEG of 0.02 look almost too cheap, and a Piotroski score of 7 out of 9 suggests the underlying business is improving. But I have to remember what I am really buying. This is a ₹30 crore NBFC, with quarterly sales of just ₹2 crore and net profit of zero in the latest quarter. A small lender has no economic moat; its raw material is money and its product is credit, so management, asset quality, and leverage decide everything. Here, debt-to-equity is not disclosed, and promoter holding is also not available. I cannot judge a bank-like business without seeing the quality of its loan book or the safety of its capital structure. The 373% sales growth is flattering on a tiny base; profit growth of 40% is nice, but the absolute numbers are trivial. ROE of 15.69% is respectable, yet ROCE of only 2.80% tells me the return on capital is weak. The dividend is zero, so I am relying entirely on asset value appreciation and eventual earnings power. At this price, the margin of safety is thin, not deep. I would not call this a wonderful business; it is a speculative small-cap recovery situation. The stock is near the upper end of its 52-week range, so the market has already noticed the improvement. I would need to see consistent quarterly profits, clean asset quality, and real transparency before committing a rupee. If those things arrive, this could be an interesting turnaround; until then, it is only a watch-list case.

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