Optimus Finance (531254)
TurnaroundScore breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹106 |
| Market Cap | ₹81.51 Cr |
| P/E Ratio | 18.97 |
| ROCE | 14.24% |
| ROE | 1.85% |
| Dividend Yield | 0% |
| Profit Growth | -29.55% |
| Debt/Equity | — |
| Sales Growth | 17.27% |
| 52-Week Range | ₹11.16 — ₹106 |
| Sector | Finance |
| Book Value | ₹2.89 |
Strengths
- Sales growth of 17.27% shows the business is expanding its top line.
- ROCE of 14.24% suggests reasonable returns on capital employed, if sustained.
- Latest quarter is profitable: ₹44 Cr sales with ₹2 Cr net profit.
- P/E of 18.97 is not extreme if earnings stabilize from here.
Concerns
- ROE of only 1.85% is very weak for an NBFC, especially with price at 36.68 times book value.
- Profit growth is -29.55% despite sales growth, indicating margin compression.
- Piotroski F-score of 4/9 points to poor financial health and operational weakness.
- No dividend, no promoter holding data, and no debt-to-equity disclosure reduce investor transparency.
AI Analysis
Let me be honest: this is not the kind of business Benjamin Graham would have circled. Optimus Finance, an NBFC with a market cap of just ₹82 Cr, trades at ₹106 after an extraordinary run from ₹11.16 in the past year. That alone puts me on guard. The book value is only ₹2.89, so the market is paying 36.68 times book. For any financial company, book value and return on equity matter intensely. Here ROE is a meagre 1.85%. That tells me the company is not generating compelling returns on shareholders' money. ROCE at 14.24% looks better, but it is not enough when the equity base is so thin and profit growth has fallen 29.55%. Sales grew 17.27%, yet the latest quarter net profit is only ₹2 Cr on sales of ₹44 Cr. That is a very thin margin. The Piotroski F-score of 4/9 reinforces my caution—financial health is weak, and a zero dividend yield offers no compensation while I wait. A P/E of 18.97 is not outrageous, but with falling profits and a PEG ratio built on sales growth rather than earnings growth, it offers no margin of safety. I don't need to own every business; I need to own businesses I understand with durable earnings and a reasonable price. Right now, Optimus Finance looks more like a speculative re-rating than a value compounder. If profits recover and return on equity climbs, I might become interested, but I would need to see evidence over several quarters and full promoter data. Until then, this is a 'no' for me.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer