KIFS Financial (535566)

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

Key Financials

Strengths

• Revenue growth of 32.41% and profit growth of 30.51% are strong, with a low P/E of 13.24 and PEG of 0.42.
• Return on equity of 17.42% indicates decent capital efficiency for a small NBFC.
• Piotroski F-Score of 7/9 suggests solid fundamentals across profitability, leverage, and efficiency metrics.
• Pays a modest dividend yield of 1.32%, providing some shareholder return while retaining growth capital.

Concerns

• Extremely small scale — latest quarter revenue of ₹7 Cr and profit of ₹2 Cr — reduces resilience and institutional quality.
• Price-to-book of 3.37 is high relative to book value of ₹44.96, leaving little margin of safety if growth stalls.
• Debt-to-equity is not disclosed; ROCE of 9.37% versus ROE of 17.42% implies meaningful leverage whose credit risk is not fully assessable.
• Wide 52-week range of ₹102 to ₹192 signals volatility and cyclicality in the stock.

AI Analysis

If I were to value KIFS Financial, I would start with the same question Graham always asked: am I getting more than I am paying for? At ₹151.50, the market cap is just ₹165 Cr and the P/E is 13.24. For a business growing sales at 32.41% and profits at 30.51%, that earnings multiple is not unreasonable. The PEG of 0.42 makes the growth look inexpensive on the surface. But cheapness in financials can be a trap. The book value is ₹44.96, so I am paying 3.37 times book. That is a high price for a lender unless the return on equity is exceptional. ROE of 17.42% is good, but ROCE of only 9.37% tells me leverage is doing a lot of the heavy lifting. For an NBFC, the absence of a debt-to-equity figure is a real concern. A lender who does not clearly show how much he has borrowed is not giving me the transparency I require. Also, this is a very small enterprise: the latest quarter shows revenue of just ₹7 Cr and net profit of ₹2 Cr. Such a small book can compound quickly, but it can also be wiped out by a single bad loan cycle. The Piotroski F-score of 7 suggests the financials are structurally sound today. The dividend yield of 1.32% is a small cushion. Still, I need to know asset quality, funding costs, and the actual loan book before I can call this a wonderful business. Growth at a reasonable price is attractive, but in financials, price is only the entry; the real risk lies in what you cannot see. I would keep this on my watchlist, not rush in.

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