Elixir Capital (531278)

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

Key Financials

Strengths

• Sales growth of 120.36% and profit growth of 356.82% show strong momentum.
• Latest quarter sales of ₹13 Cr and net profit of ₹5 Cr indicate accelerating performance.
• ROCE of 20.07% suggests efficient use of capital.
• Piotroski F-Score of 7/9 points to improving recent financial health.

Concerns

• ROE of only 3.36% is weak for a financial services firm trading at 3.10 times book value.
• P/E of 24.29 leaves little margin of safety, especially if growth is not sustainable.
• Trailing earnings implied by P/E (~₹2.6 Cr) are far below the latest quarter profit of ₹5 Cr, indicating volatility or a low base.
• Promoter holding and debt/equity are undisclosed, limiting transparency on ownership and leverage.

AI Analysis

As an investor, I first ask: what kind of business am I buying? Elixir Capital is a small financial services firm with a market cap of just ₹64 crore and a price of ₹107.65. The recent numbers look explosive: sales up 120.36%, profit up 356.82%, and the latest quarter delivered ₹13 crore in sales and ₹5 crore in net profit. But a 357% profit jump usually comes from a tiny or previously depressed base; I cannot treat that as normal. I also notice the numbers do not reconcile well. The P/E of 24.29 on a ₹64 crore market cap implies annual earnings of only about ₹2.6 crore, yet the latest quarter alone shows ₹5 crore profit. That tells me the trailing earnings were much weaker, so this is closer to a turnaround than a steady grower. The ROE of 3.36% is very low, especially when the stock trades at 3.10 times book value of ₹34.68. In financial services, return on equity is the true test. A low ROE with a high P/B means I am paying a premium for a business that earns little on equity. ROCE of 20.07% is positive, and the Piotroski F-Score of 7/9 suggests improving financial health. Still, debt-to-equity is not available, and promoter holding is unknown. Without those, I cannot judge leverage or alignment. A ₹64 crore market cap leaves no moat, no scale, and no margin for error. The 52-week range of ₹78.10 to ₹143.80 explains the volatility. The PEG of 0.10 is seductive, but it is built on a 357% growth figure that I expect to slow sharply. As Graham said, you pay a high price for optimism. I would wait for a consistent track record, higher ROE, and clarity on the balance sheet before taking a position.

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