Kreon Finnancial (530139)

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

Key Financials

Strengths

• Revenue growth of 54.11% and profit growth of 128.76% show strong recent momentum.
• PEG ratio of 0.12 indicates the market may be undervaluing the growth rate.
• ROE of 16.73% is above the average for Indian NBFCs.
• Piotroski F-Score of 6/9 suggests decent financial health.
• P/E of 10.86 is reasonable for a company with high near-term growth.

Concerns

• ROCE of -2.17% raises a red flag on actual operational returns.
• Zero dividend yield means no income support for shareholders.
• Debt/Equity and promoter holding data are unavailable, limiting assessment of leverage and alignment.
• Latest quarter profit of ₹1 Cr on ₹10 Cr sales may not sustain the trailing P/E if growth slows.

AI Analysis

At ₹39.13, Kreon Finnancial presents an intriguing but incomplete picture. A P/E of 10.86 and a PEG of 0.12 suggest the market is pricing in very little of the recent 128.76% profit growth and 54.11% sales growth. As Graham would say, numbers are the starting point, not the whole story. The ROE of 16.73% is respectable, and book value of ₹17.99 gives some support—though at P/B 2.18, you're paying a premium for that book. What worries me is ROCE at -2.17% for an NBFC; this suggests the core operating returns are not healthy, or there are measurement oddities. With no debt/equity data and no promoter holding disclosed, I cannot assess leverage or insider alignment. The latest quarter sales of ₹10 Cr and net profit of ₹1 Cr show a margin of 10%, but annualized that profit is far below what the P/E implies—so I must rely on the reported trailing P/E. This is a fast grower, but a fragile one. There is no dividend, so return must come solely from price appreciation. A F-Score of 6 out of 9 is passable, but not a clean bill of health. As Buffett, I prefer businesses with predictable cash flows and durable moats. Kreon is small, speculative, and data-deficient. I'd keep it on the watchlist, but only a very small position, if any, until leverage, promoter holding, and the profitability trajectory become clearer.

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