Indo Credit Cap. (526887)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I first ask whether I understand the business and whether the numbers promise a margin of safety. Indo Credit Cap is a micro-cap NBFC with a market capitalization of just ₹3 crore. Anything this small is a sub-institutional pocket, so I demand even stronger evidence before acting. The headline is seductive. The stock is trading at ₹2.14 while book value is ₹8.00, a 73% discount. That is a Graham-style asset cue. But book value is only a starting point, not a conclusion. The operating record is not encouraging. Return on equity is 1.12%, and ROCE is negative at -0.86%. A business earning this little on its net worth cannot be called a wonderful enterprise. The latest quarter shows sales of ₹0 crore and net profit of ₹0 crore. Sales growth is zero, and the reported 150% profit growth is on a microscopic base. Paying a P/E of 45.33 for that earnings stream is not something I can do with confidence. I also note the Piotroski score is only 5 out of 9—not a compelling fundamental signal. The PEG ratio of 0.30 would interest me if growth were real and durable, but with zero current quarter earnings, I cannot trust it. There is no dividend, promoter holding is not disclosed, and debt-to-equity is given as N/A. In an NBFC, inadequate disclosure of leverage and loan quality is dangerous. So what is this? On the figures, it is an asset play. A price-to-book of 0.27 implies the market values the balance sheet at a deep discount. If the assets are honestly valued and recoverable, there is potential. But an NBFC earning 1% ROE with negative ROCE could easily be destroying value. Value investing demands not just a low price, but evidence. Here I have too little evidence. I would need audited financials, loan book quality, capital adequacy, and promoter commitment before committing a rupee. Price is what you pay; value is what you get—and I am not yet convinced about that value.

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