Capital Trade Lk (538476)

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

Key Financials

Strengths

• Positive book value of ₹5.58 per share gives a basic equity cushion
• Latest quarter is still profitable with ₹1 Cr net profit
• Trailing earnings are positive, as reflected in a P/E of 30.98
• ROE of 10.09% shows some, albeit limited, ability to generate returns on equity

Concerns

• P/E of 30.98 and P/B of 9.52 are far too high for a business with declining sales and profits
• Sales growth of -11.98% and profit growth of -54.05% show clear contraction
• Piotroski F-score of 3/9 indicates weak financial health
• Zero dividend, undisclosed promoter holding, and unavailable debt/equity details limit investor transparency

AI Analysis

Let me start with a confession: the numbers fail every test I apply. Capital Trade Lk is a small NBFC with a market cap of ₹342 crore, yet latest quarter sales are just ₹6 crore and net profit is ₹1 crore. The business is shrinking—sales are down 11.98% and profit is down 54.05%. A Piotroski score of 3/9 tells me the financial health is weak. The return on equity of 10.09% is modest, and ROCE of 7.42% is even lower; there is no sign of a moat. In a lending business, you need low-cost capital, strong underwriting, and scale. I see none from these figures. Now look at the price: ₹53.10, against book value of ₹5.58. That gives a price-to-book of 9.52 and a P/E of 30.98. The stock sits at its 52-week high of ₹53.10, after being as low as ₹14.30. That price move is pure hope, not demonstrated value. There is no dividend yield at 0.00%, so I cannot get paid while I wait. With promoter holding and debt/equity both unavailable, I cannot assess ownership or leverage. Graham would demand a margin of safety; here, the market has already priced in a brilliant future. I will not chase hope with real money. This is a possible turnaround situation, but only proof of renewed profits will make it investable. Until then, it belongs in the too-hard pile.

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