G K Consultants (531758)

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

Key Financials

Strengths

• Piotroski F-Score of 7/9 indicates decent financial health and no immediate balance sheet red flags.
• ROE of 10.02% is positive and modestly respectable for a small NBFC.
• Positive book value of ₹5.74 provides some asset cover, even though the market price is far above it.
• Listed on NSE/BSE with a ₹11 Cr market cap, making it accessible to investors, albeit volatile.

Concerns

• Latest quarter shows ₹0 sales and ₹0 net profit, suggesting the business may be dormant.
• ROCE of 0.35% is extremely low; capital is not being deployed profitably.
• Sales growth and profit growth are both 0.00%, and there is no dividend yield, leaving no visible return to shareholders.
• At P/E 17.7 and P/B 3.28, the stock is priced for growth that is not visible, especially at the top of its 52-week range.

AI Analysis

At ₹18.82, G K Consultants is a ₹11 crore microcap NBFC asking me to pay 17.7 times earnings and 3.28 times book. That is not a bargain by Graham's standard. The 10.02% ROE is acceptable, and a Piotroski F-Score of 7/9 suggests the balance sheet is not in distress. But investing is about future earning power, and here I see none: sales growth and profit growth are both 0.00%, and the latest quarter shows ₹0 sales and ₹0 net profit. A company with no current earnings should not command a premium multiple. The 0.35% ROCE is a serious concern—capital employed is producing almost no return, so the book value of ₹5.74 is not earning its keep. There is no dividend yield, either; the only way to profit is if a higher bidder comes along. That is speculation, not investment. The claimed PEG of 0.12 is meaningless unless growth actually appears; with zero real growth, it is just a number. In India, a small NBFC can be a fine business if it has a niche and sensible underwriting. I do not see that evidence here. I would want to know why the latest quarter is empty, where the loan book is, and how management plans to improve ROCE from 0.35%. Until those questions are answered, the margin of safety is missing. Price is ₹18.82, book value is ₹5.74, and the business is barely earning 10% on that book. There is no room for error. I will happily pass and wait for a better price or a demonstrated turnaround.

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