India Finsec (535667)

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

Key Financials

Strengths

• Latest quarter profitable with ₹22 Cr sales and ₹5 Cr net profit
• Sales growth of 16.51% and profit growth of 105.23% show momentum
• Piotroski F-Score of 7/9 suggests decent operational health
• ROCE of 15.02% is respectable for an NBFC
• PEG of 0.61 implies reasonable valuation if the high growth is sustained

Concerns

• P/E of 37.14 and P/B of 8.21 leave no margin of safety; book value is only ₹16.55
• Reported ROE of -0.41% contradicts positive latest-quarter profit and positive book value, making financials appear inconsistent
• Zero dividend yield means total return depends entirely on price appreciation
• Promoter holding and debt/equity are N/A, giving insufficient transparency for a small NBFC
• Current price of ₹135.95 is below the 52-week low of ₹140.10, indicating negative momentum or a possible data issue

AI Analysis

At first glance, India Finsec looks like a tempting small-cap growth story. Sales are up 16.51%, profits are reportedly up 105.23%, and the latest quarter shows ₹22 Cr of revenue and ₹5 Cr of net profit. The Piotroski F-Score of 7/9 also signals decent financial health. But Graham taught me to weigh the price against the facts, and here the facts don't entirely agree. At ₹135.95, this NBFC carries a market cap of ₹339 Cr, a P/E of 37.14, and a P/B of 8.21. Book value is just ₹16.55, so I am paying more than eight times stated equity for a very small lender. That is the opposite of a margin of safety. The zero dividend yield means every rupee of return must come from someone else paying me more later. I am also troubled by the stated ROE of -0.41%. If the company truly earned ₹5 Cr in the latest quarter and has positive book value, the ROE should not be negative. This type of inconsistency makes me suspicious that the 105% profit growth may be a low-base or one-off effect, not a durable compounding engine. ROCE of 15.02% is respectable, but I cannot assess leverage because debt/equity is shown as N/A. Promoter holding is also N/A, so I don't know if the people running this business have real skin in the game. The price is even below the stated 52-week low of ₹140.10, which tells me the market is not rewarding this stock. The PEG ratio of 0.61 only makes sense if the extraordinary profit growth continues; at 37 times earnings, any stumble will hurt. As an NBFC, asset quality and borrowings matter more than headline profit. Until I see clean, consistent numbers, a clearer balance sheet, and a cheaper price, I will not be an owner.

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