Bengal & Assam (533095)

FairStock Score: 44/100 — MIXED

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

Key Financials

Strengths

• P/E of 8.43 is low relative to 29.1% profit growth, giving a PEG of 0.45
• Piotroski F-Score of 7/9 suggests reasonably sound financial health
• Latest quarter shows strong net margin: ₹156 Cr profit on ₹531 Cr sales
• Sales growth remains positive at 8.6%, with profit growth accelerating faster

Concerns

• P/B of 8.54 against book value of ₹1,042 is steep when ROE is only 10.49%
• ROCE of 4.22% is weak for an NBFC, indicating poor return on capital deployed
• Sales growth of 8.6% lags profit growth of 29.1%, raising sustainability questions
• Debt/equity and promoter holding data are unavailable, limiting full risk assessment

AI Analysis

At first glance, Bengal & Assam offers a tempting value equation: trailing P/E of 8.43 and 29.1% profit growth make the PEG look like 0.45. A patient investor likes buying earnings cheaply, but Graham taught me to demand more than one ratio. The company earns only 10.49% on equity and 4.22% on capital, yet the market prices it at 8.54 times book value of ₹1,042. That is a high price for moderate returns; value is not just low P/E, it is the relationship between price and the business's ability to generate returns on tangible assets. The Piotroski score of 7/9 tells me the financial position is reasonably solid, but I cannot fully trust what I cannot see. Debt/equity is not available, promoter holding is not available, and sales growth of 8.6% is far behind profit growth of 29.1%. I want to know whether those profits came from core lending, treasury gains, or one-off items. The latest quarter shows ₹531 Cr revenue and ₹156 Cr net profit, which is a sharp margin, but I do not know if that is sustainable. The stock trades at ₹8,906, near the top of its 52-week range; Mr. Market is already optimistic. Dividend yield of 0.80% is hardly a reason to own it. For me, an NBFC must be evaluated on asset quality, leverage, and cost of capital. Without those details, low P/E can be a value trap. If future earnings grow as fast as recent profit growth, the stock might be reasonably priced, but I would wait for a better margin of safety and more transparency before treating this as a classic Graham buy.

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