Amit Securities (531557)

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

Key Financials

Strengths

• Trades at P/B of 0.19 against book value of ₹20.97, offering a large stated asset cushion.
• Piotroski F-Score of 7/9 suggests the company avoids immediate financial distress and may have some improving fundamentals.
• Small market cap of ₹38 Cr means even modest capital actions or asset monetisation could move per-share value meaningfully.

Concerns

• ROE of 0.94% and ROCE of 1.61%, with latest-quarter net profit of ₹0 Cr on sales of ₹1 Cr, show negligible earnings power.
• Zero sales and profit growth, plus 0.00% dividend yield, mean no compounding or income support for shareholders.
• P/E of 30.86 is expensive for an NBFC with near-zero earnings; valuation rests entirely on asset recovery.
• Data inconsistencies: current price ₹4.00 is outside the stated 52-week range, promoter holding is N/A, and PEG 0.20 contradicts reported 0.00% growth.

AI Analysis

When I look at Amit Securities, I don't see a growth story; I see a balance sheet puzzle. The market cap is ₹38 Cr, yet book value is ₹20.97 per share. At ₹4, I can supposedly buy ₹21 of net assets for less than a fifth of their stated worth. Graham would call this bargain hunting, but only if the book value is real and productive. The problem is that the business itself earns almost nothing: ROE is 0.94%, ROCE is 1.61%, and the latest quarter shows sales of ₹1 Cr and net profit of ₹0 Cr. An NBFC that does not earn on capital is not a compounding machine; it is a warehoused asset. The P/E of 30.86 on such tiny profits tells me the earnings base is weak, not that the company is expensive in a cash-generative sense. Sales and profit growth are both 0.00%, dividend yield is 0.00%, so there is no visible catalyst. The Piotroski F-score of 7/9 is the one encouraging sign; it hints at no immediate distress. However, I cannot ignore the strange quote: the 52-week range is ₹27.21 to ₹67.16, yet the price is ₹4.00. That suggests a data error, a corporate action, or a liquidity trap; all are red flags for a retail investor. A PEG ratio of 0.20 also conflicts with the reported zero growth, making me distrust the available numbers. I am troubled by promoter holding being N/A; in India, promoter skin in the game matters. This is not a stalwart or a fast grower. It is a potential asset play, but only if the net assets are worth more than the market says and can be realised. If book value erodes, a low P/B is worthless. I need evidence of asset quality, capital allocation, or a control event before deploying even a small sum.

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