Abhinav Capital (532057)

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

Key Financials

Strengths

• Book value of ₹133.23 per share provides a tangible asset base, with P/B of 1.42 not extreme in absolute terms.
• Piotroski F-Score of 6/9 points to reasonable financial health and no obvious accounting stress.
• Debt/Equity reported as N/A suggests a conservative, likely low-leverage balance sheet for an NBFC.
• Net profit grew 41.86% and the stock is at its 52-week high, reflecting improved market perception.

Concerns

• ROE of 3.12% and ROCE of 4.58% are far too low for the valuation paid.
• Sales fell 9.52% while profit rose 41.86%; profit quality and sustainability are questionable.
• P/E of 36.15 and P/B of 1.42 leave little margin of safety for such weak fundamentals.
• No dividend yield and micro-cap scale with quarterly sales of ₹1 Cr make this more speculative than investment-grade.

AI Analysis

At ₹189.85, Mr. Market is valuing Abhinav Capital at ₹132 crore. I first look at the return a business earns on what I am buying. Book value is ₹133.23 per share, yet ROE is only 3.12% and ROCE 4.58%. That is a sub-inflation return on capital. Paying 1.42 times book for such a franchise is not a margin of safety; it is paying up for a low-earning asset. The reported profit growth of 41.86% looks attractive until you notice sales declined by 9.52%. A growing bottom line on a shrinking top line is often a one-off gain, cost cuts, or base effect, not evidence of a durable moat. The 36.15 P/E and PEG of 0.86 rely on that single-year profit growth; Graham would not trust a small sample to justify a premium. There is no dividend, so the investor gets nothing while waiting. In my circle of competence, I need predictable cash generation and a clear competitive advantage. This is a micro-cap with quarterly sales of just ₹1 crore and net profit of ₹1 crore. I cannot tell whether the quality is real. On the positive side, the balance sheet looks conservative: D/E is not reported and the Piotroski score of 6/9 suggests no distress. Book value of ₹133 also provides some asset cover. But the stock sits at the top of its 52-week range, and Mr. Market is optimistic. I need a wide margin of safety. At 1.42x book and 3% ROE, there is no margin. Abhinav Capital may turn out well, but it is not a business I can value with confidence. I would pass.

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