Haryana Fin. Co. (530927)

FairStock Score: 18/100 — RISKY

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

Key Financials

Strengths

• Latest quarter net profit of ₹9 Cr on ₹10 Cr sales shows a sharp improvement in reported profitability.
• Piotroski F-Score of 6/9 suggests some balance-sheet and operating metrics have improved recently.
• Reported profit growth of 1000% indicates the company is emerging from a low-earnings base.

Concerns

• Trailing P/E of 205.09 and P/B of 2.28 are far too rich for ROE of 3.61% and ROCE of 0.03%.
• Sales growth is 0.00%; the profit jump appears to be driven by margins, not sustainable revenue growth.
• Current price ₹24.65 lies below the stated 52-week low of ₹63.00, signalling data inconsistency or severe distress.
• No dividend and no promoter holding information reduce transparency and shareholder return visibility.

AI Analysis

Let me start with what is before me. Haryana Fin. Co. trades at ₹24.65, yet the stated 52-week range is ₹63.00–₹93.97. That is impossible unless there has been a corporate action or the data is stale; either way, it destroys my confidence. A rational investor does not need to understand every number, but he must avoid what cannot be explained. The company earns very little on capital. Return on equity is 3.61% and ROCE is just 0.03%, which means the business is barely earning anything on the money shareholders have put in. Book value is ₹10.80, yet I am asked to pay ₹24.65, or 2.28 times book, with a trailing P/E of 205.09. There is no margin of safety. A 90% net margin on ₹10 Cr sales in the latest quarter is not a sign of a durable moat; it is a warning that earnings are volatile or one-time. Sales growth is 0.00%, so the 1000% profit growth is not coming from growing demand. The PEG of 0.21 is meaningless when the 'G' is a low-base recovery. Graham would say: price is what you pay, value is what you get. At 205 times earnings and 2.28 times book for a company earning 3.61% on equity, the value is not obvious. Buffett would look for a franchise with pricing power; I see none. The Piotroski score of 6/9 is mildly positive, and the latest quarter does show a profit, but the FairStock score of 18/100 calls this risky. There is no dividend, no promoter holding data, and no growth in sales. This is not a wonderful business at a fair price; it is a poor business at a rich valuation. I would leave it to speculators and pass.

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