KJMC Financial (530235)

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

Key Financials

Strengths

• Price-to-book of 0.22 means paying only ₹68.75 for ₹315.13 of stated book value, offering margin of safety if assets are sound.
• Piotroski F-Score of 7/9 suggests recent improvements in fundamentals.
• Sales growth of 25.98% indicates some business traction.
• Profit growth of 633.33%, though low-base, shows the earnings can turn sharply.
• Tiny market cap of ₹34 crore may leave room for mispricing and patient value discovery.

Concerns

• Latest quarter net profit is ₹0 crore on sales of ₹2 crore, so earnings are still negligible and volatile.
• ROE of 0.95% and ROCE of 1.36% show capital is earning far below an acceptable return.
• Zero dividend yield means no income while waiting for the discount to book value to close.
• Debt/equity and promoter holding are N/A, leaving leverage and promoter alignment unverifiable for an NBFC.

AI Analysis

At ₹68.75, with book value of ₹315.13, KJMC Financial is trading at just 0.22 times book—a 78% discount to stated net worth. That immediately catches a value investor's eye. But Graham also taught that a bargain is only real if the assets are genuine and earning power exists. Here, the earning power is terribly weak: ROE is 0.95% and ROCE is 1.36%. This is not a wonderful business; it is a balance sheet that is earning almost nothing for its owners. The reported profit growth of 633% and sales growth of 25.98% sound exciting, but the latest quarter shows only ₹2 crore in sales and ₹0 crore in net profit. That tells me the growth is from a tiny, unstable base, not from a durable moat. The P/E of 15.28 is meaningless on such volatile earnings, and the PEG of 0.05 is a statistical illusion, not a sign of cheapness. A Piotroski F-score of 7/9 does suggest some improvement in fundamentals, but I would not let one score overcome the lack of visible competitive advantage. The dividend yield is zero, so I get no income while waiting for value to turn. I also cannot assess financial health because debt/equity is not available, and promoter holding is not disclosed; for an NBFC, those are essential. The market cap is only ₹34 crore, so this is a micro-cap with little margin for error. If the stated book value is honest and a catalyst unlocks it, the stock could be an asset play. If it is not, the low price may be exactly what the assets are worth.

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