United Credit (531091)

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

Key Financials

Strengths

• Trades at 0.59 times book value, with price ₹31.85 versus book value ₹53.82.
• Market cap is only ₹17 Cr, so even small absolute profit improvements can move per-share metrics.
• Stock is above its 52-week low of ₹19, showing some buyer support in the market.
• A depressed P/B ratio may indicate the market already expects further deterioration, reducing downside if book value holds.

Concerns

• Profit growth is sharply negative at -40.74%, and sales fell -13.48%.
• ROE of 2.32% and ROCE of 4.36% show very weak returns on capital.
• Latest quarter net profit is ₹0 Cr on sales of ₹1 Cr, indicating little or no earnings power.
• Piotroski F-Score of 3/9 suggests poor overall financial health.
• No dividend yield means investors receive no income while waiting for a recovery.

AI Analysis

United Credit presents a classic Graham-style puzzle. At ₹31.85, I am paying only 59% of the stated book value of ₹53.82. That is a substantial discount, and a margin of safety on paper. But Ben Graham always reminded us that price is what you pay, value is what you get. Here, value depends entirely on whether that book value is honest and productive. The numbers tell me the earning engine is weak. Return on equity is just 2.32%, and return on capital employed is 4.36%. That is far below what I expect from a well-run lender. Sales have shrunk 13.48%, profit has fallen 40.74%, and the latest quarter shows sales of only ₹1 crore and net profit of ₹0 crore. A P/E of 20.78 makes no sense for a business in this condition unless you expect a dramatic recovery, which the Piotroski score of 3/9 does not support. There is no dividend, so I am not being paid while I wait. The debt-to-equity ratio is not provided, so I cannot properly judge financial leverage and repayment risk. An NBFC without clear profitability and transparent asset quality is a trust-dependent business. I would only call this an asset play: the discount to book value is interesting, but book value can erode if loans turn bad. Good books are not enough; I need economic earnings. Until I see stable profits, improving returns, and management behaving like owners, I will keep my wallet closed. Curiosity is not a reason to buy.

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