SKP Securities (531169)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹135.75, this is a small NBFC with a market cap of just ₹94 crore. Let me look at what Mr. Market is offering: a P/E of 7.29 and a P/B of 1.86 against a book value of ₹72.94. The company earns a return on equity of 20% and a ROCE of 27.55%. That is a decent franchise, but I still ask: does it have a durable moat? In Indian securities and broking-related NBFCs, moats are narrow and competition is intense. The latest quarter shows sales of ₹10 crore and net profit of ₹3 crore; profit growth is 59.28% while sales growth is 16.52%. That kind of operating leverage is attractive, yet it also demands that growth continues. A PEG ratio of 0.19 suggests the market is paying very little for that growth, but such small numbers can be volatile. The Piotroski F-Score of 7/9 justifies a close look; profitability and fundamentals appear healthy. However, I am concerned about the absence of promoter holding and debt/equity data. With the stock near its 52-week high of ₹135.75 and yielding only 1.94%, there is little margin of safety on price. I would not chase it here. I need a larger balance sheet, a longer track record of earning 20% on equity, and evidence that earnings are not just a lucky quarter. In Graham's words, price is what you pay, value is what you get. At this price, value may exist, but size and data gaps keep me from making a committed purchase.

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