Moongipa Capital (530167)

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

Key Financials

AI Analysis

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

At ₹53.80, Moongipa Capital is a tiny ₹26 crore NBFC, and my first instinct is caution. Graham taught me to buy with a margin of safety. Here, price-to-book is 6.20 while book value is just ₹8.68. That means the market is pricing in excellent future returns for a business with no durable moat and very limited competitive scale. The trailing P/E of 12.10 looks modest, but profit growth is -37.14% and the latest quarter shows net profit of ₹0 crore. Sales grew 36.11%, yet that growth is not translating into earnings. This is a red flag. ROE of 15.11% and ROCE of 12.08% are decent, but with a Piotroski score of only 4/9, financial health is weak. There is zero dividend yield, promoter holding is not available, and the stock sits at its 52-week high of ₹53.80, up from ₹12.00. For a lender, I need visibility on asset quality and capital; debt/equity is N/A, so I cannot assess leverage. The PEG of 0.34 is misleading when profits are falling. When sales grow but profits collapse, I call it a warning, not a bargain. Moongipa may be a turnaround candidate if margins recover, but the evidence today is insufficient. I would not invest my money without clear proof of sustainable earnings and a reasonable price. In Buffett's words, it is far better to buy a wonderful company at a fair price than a fair company at a wonderful price. This is a small, unproven lender selling at a premium to book, and I would pass.

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