Cil Securities (530829)

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

Key Financials

Strengths

• Trading at a 25% discount to book value with P/B of 0.75 and book value of ₹65.67.
• P/E of 9.90 is modest, leaving little room for high growth expectations.
• Profit grew 6.25% despite falling sales, and latest quarter shows ₹1 Cr profit on ₹2 Cr sales.
• Piotroski F-Score of 6/9 indicates reasonably stable financials for a small NBFC.
• ROCE of 10.08% is above ROE, suggesting operational returns exceed shareholder returns.

Concerns

• Sales declined 13.45%, indicating a shrinking business with weak demand or portfolio contraction.
• ROE is only 6.51%, showing poor returns on shareholder capital.
• Zero dividend yield means no income while waiting for a re-rating.
• Lack of promoter holding and debt/equity data, combined with ₹25 Cr market cap, creates transparency and liquidity concerns.

AI Analysis

Cil Securities is a micro-cap NBFC with a market cap of only ₹25 crore. Warren Buffett said it is far better to buy a wonderful company at a fair price than a fair company at a wonderful price, and this is a fair-company test. I see no durable moat here. The business is small, sales are down 13.45%, and return on equity is just 6.51%. In financial services, a low ROE usually means the firm is not earning enough on its capital base. On the positive side, the stock trades at ₹49.54 against a book value of ₹65.67, a 25% discount. That is Graham-like margin of safety. P/B of 0.75 and P/E of 9.90 signal that the market is not paying for growth, which is wise given the shrinking topline. Profit growth of 6.25% sounds good, but with sales falling, it could be cost-cutting rather than business strength. ROCE is 10.08%, yet without clarity on debt and leverage, it does not reassure me. The latest quarter shows only ₹2 crore of sales and ₹1 crore of profit; at that scale, one or two bad transactions could hurt the whole business. Piotroski F-score is 6/9, decent, but not proof of quality. No dividend yield means the shareholder receives nothing while waiting. Promoter holding and debt-to-equity are not available, which is uncomfortable for a company this small. The valuation appears cheap, but a low P/B on poor returns can be a value trap. I would treat this as an asset play, not a compounder. I would need clear evidence of improving sales, higher ROE, and better transparency before committing a rupee.

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