Upsurge Invest. (531390)

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

Key Financials

Strengths

• Positive net profit of ₹1 Cr in the latest quarter and book value of ₹47.72 provide a tangible asset base
• ROCE of 25.58% suggests operating capital efficiency, if sustained
• P/E of 14.79 is not excessive if earnings stabilise
• Small-cap NBFC with market cap ₹173 Cr may have niche growth opportunities

Concerns

• Sales and profit declined steeply by 49.21% and 51.70%, indicating severe business contraction
• Piotroski F-Score of 3/9 points to weak financial health
• ROE of 9.51% is mediocre while P/B of 1.77 means paying a premium to book value
• Debt/Equity and promoter holding are N/A, leaving leverage and governance risks unassessed

AI Analysis

At ₹84.69, Upsurge Invest carries a market cap of ₹173 Cr. The first thing I look for in an NBFC is the quality and stability of earnings. Here, the numbers fail that test. Sales have collapsed by 49.21% and profit by 51.70%, and the latest quarter shows just ₹9 Cr of sales and ₹1 Cr of net profit. This is not the profile of a compounding machine. The Piotroski F-Score is 3/9, a red flag that financial health has deteriorated. Return on equity is 9.51% — barely acceptable and below what I demand for owning a stake in any business. Book value is ₹47.72, so the market is asking ₹84.69, or 1.77 times book, for a business earning less than 10% on that book. That is no margin of safety. The reported ROCE of 25.58% looks impressive, but for a financing company, debt and leverage are critical; with debt/equity not available, I cannot verify how that return is achieved. Dividend yield of 0.69% is negligible. Promoter holding is also undisclosed, so I cannot judge whether management has skin in the game. A 52-week range of ₹56 to ₹109.80 shows high volatility, but price falling from the high is not value. Graham said price is what you pay, value is what you get. Here, I get declining profits, weak return on equity, and an uncertain balance sheet. The P/E of 14.79 may look reasonable, but it is based on falling earnings. I would need clear evidence of stabilisation, better capital metrics, and honest capital allocation before considering this. For now, this is a pass.

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