PMC Fincorp (534060)

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

Key Financials

Strengths

• ROCE of 11.32% indicates some capital is earning a reasonable return.
• Latest quarter remains profitable with net profit of ₹1 crore on sales of ₹5 crore.
• Small dividend yield of 0.52% provides a token cash return to shareholders.
• Stock trading near its 52-week high shows market interest, though not intrinsic strength.

Concerns

• Profit growth has collapsed by 86.28%, signaling severe deteriorating earnings.
• Sales growth is negative at -3.31%, so the business is shrinking.
• ROE of just 6% is far too low for a small NBFC.
• Piotroski F-Score of 3/9 suggests weak financial health and poor fundamentals.

AI Analysis

Looking at PMC Fincorp, I see a business that fails Graham's first test: I cannot understand its real earning power. The stock trades at ₹4.71, near the top of its 52-week range, yet profit has collapsed by 86.28% and sales have shrunk 3.31%. A P/E of 18.55 on falling earnings offers no margin of safety; with book value of ₹1.87, I am paying 2.52 times book for a 6% return on equity. Price is what you pay, value is what you get, and here I see little value being created. The latest quarter shows sales of only ₹5 crore and net profit of ₹1 crore. That is a tiny business, and the Piotroski F-Score of 3/9 tells me the financial health is suspect. Good companies throw off cash and improve their fundamentals; this one is going in the wrong direction. The absence of promoter holding and debt/equity data only deepens my suspicion. If the business were simple and sound, I would not need to guess. On the positive side, ROCE of 11.32% suggests some capital is earning an acceptable return, and the stock has a small dividend, but these are not enough. For an NBFC, asset quality and consistent earnings are everything. With profit down 86%, I cannot trust the loan book or the underwriting discipline. This is not a fast grower, not a stalwart, and certainly not a compounding machine. At best it is a speculative turnaround candidate. But I do not invest in guesses. I need a stronger balance sheet, stable earnings, and a price that offers protection. Today, PMC Fincorp offers none of those. I will happily watch from the sidelines, wait for improvement, and demand a margin of safety before committing a single rupee.

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