NCL Res. & Finl. (530557)
TurnaroundScore breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹0.95 |
| Market Cap | ₹102.95 Cr |
| P/E Ratio | 14.43 |
| ROCE | -0.57% |
| ROE | 2.81% |
| Dividend Yield | 0% |
| Profit Growth | 295.24% |
| Debt/Equity | — |
| Sales Growth | -41.64% |
| 52-Week Range | ₹0.39 — ₹0.95 |
| Sector | Finance |
| Book Value | ₹1.08 |
Strengths
- P/B of 0.88 means paying ₹0.95 for ₹1.08 of book value, offering an apparent asset cushion.
- Reported profit growth of 295.24% and a low PEG of 0.05 show possible turnaround momentum.
- Trailing P/E of 14.43 is not excessive if the recent earnings can be sustained.
- Stock is at the top of its 52-week range (₹0.39–₹0.95), indicating market interest.
Concerns
- Sales fell 41.64%; latest quarter sales are just ₹2 Cr and net profit ₹0 Cr, so earnings quality is weak.
- ROCE is -0.57% and ROE only 2.81%, showing poor return on capital.
- Critical disclosures missing: promoter holding and debt/equity are N/A for an NBFC.
- No dividend; Piotroski F-Score of 5/9 is only mediocre.
AI Analysis
At ₹0.95 against a book value of ₹1.08, this stock looks like a classic cheap financial. But Benjamin Graham warned: a bargain is only a bargain if the business can eventually earn a fair return on its capital. NCL Res. & Finl. does not yet show that. ROE is just 2.81%, and ROCE is -0.57%; the company is earning poor returns on capital, and its operations are actually destroying value. Sales have fallen sharply by 41.64%, and the latest quarter reported sales of only ₹2 crore with net profit of ₹0 crore. That makes the trailing P/E of 14.43 look more like an optical illusion than a cheap valuation. The 295.24% profit growth and PEG of 0.05 are due to an extremely low base, not evidence of a durable franchise. For an NBFC, promoter holding and debt-equity are essential safeguards; both are unavailable, so I cannot assess whether minority shareholders are protected or whether leverage is hidden. Piotroski score of 5/9 is mediocre, not the clean score I want. There is no dividend, so the investor is wholly dependent on price appreciation. The stock is already at the top of its 52-week range, having moved from ₹0.39 to ₹0.95. Mr. Market is excited. I need proof of stable revenues, positive quarterly earnings, and improving returns on capital before paying even 95 paise for a rupee of book value. This is a possible turnaround, not yet an investment.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer