Moongipa Capital (530167)

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

Key Financials

Strengths

• Sales growth of 36.11% shows the business is expanding its loan or revenue portfolio.
• ROE of 15.11% and ROCE of 12.08% indicate reasonable capital efficiency if sustained.
• Trailing P/E of 12.10 is not expensive on reported earnings alone.
• Current price is at the top of the 52-week range, reflecting strong recent market momentum.

Concerns

• Profit growth is -37.14% and latest quarter net profit is ₹0 crore, meaning top-line growth is not converting into bottom-line earnings.
• P/B of 6.20 against book value of ₹8.68 leaves little margin of safety for a micro-cap NBFC.
• Piotroski F-Score of 4/9 signals weak financial health.
• No dividend, no promoter holding disclosure, and debt/equity not available make thorough analysis impossible.

AI Analysis

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.

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