A.K.Capital Serv (530499)

FairStock Score: 59/100 — STEADY

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

Key Financials

Strengths

• Priced at only 9.77x earnings and 1.36x book with an ROE of 10.41%, offering a valuation cushion.
• Profit growth of 51.70% on 17.16% sales growth gives a PEG of 0.28, implying cheap growth.
• Piotroski F-Score of 7/9 indicates healthy fundamentals and improving financial strength.
• Dividend yield of 2.47% and proximity to 52-week low provide some downside comfort.

Concerns

• Debt/Equity is unavailable—critical for an NBFC, leaving leverage risk unquantified.
• Promoter holding not disclosed; lack of visibility into owner skin-in-the-game.
• ROE of 10.41% and ROCE of 8.48% are respectable but not exceptional; no clear durable moat.
• Stock is down sharply from ₹1,789.95 high, suggesting market worries about asset quality or credit cycle.

AI Analysis

At ₹1,036.15, this is a stock the market has beaten down—it sits near its 52-week low of ₹1,035.80, far below the ₹1,789.95 high. Benjamin Graham taught that price is what you pay, value is what you get. Here I am paying a P/E of 9.77 and 1.36 times book value of ₹761.39. For a company earning an ROE of 10.41%, that is not a demanding price. What makes it more interesting is growth: sales up 17.16%, profit up 51.70%, and a PEG of 0.28. If those numbers are sustainable, the market is giving me growth at a discount. The Piotroski score of 7/9 also suggests the financials are sound, and a dividend yield of 2.47% offers some patience premium. Latest quarter net profit of ₹26 Cr on sales of ₹135 Cr, annualized, would make the trailing P/E even cheaper. Still, I cannot ignore what is missing. The debt/equity is not available, and for an NBFC, leverage is the lifeblood and the risk. Promoter holding is also not disclosed; in India, I want owners with skin in the game. ROE of 10.41% and ROCE of 8.48% say this is a decent, not wonderful, business. There is no clear moat here—an NBFC in a competitive lending market must earn trust and manage credit cycles carefully. The 52-week price action tells me the market has doubts. This is not a cigar butt; it is a steady operator selling at a value price. FairStock Score of 59/100 calls it 'Steady'—I agree. If leverage is sane and asset quality holds, the upside from this base is significant. But I would not bet the farm without seeing the liability side.

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