Qgo Finance (538646)

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

Key Financials

Strengths

• P/E of 8.93 with 19.40% profit growth gives a PEG of 0.60, suggesting reasonable valuation relative to earnings growth
• ROE of 18.88% on a book value of ₹24.76 shows decent capital efficiency
• Piotroski F-Score of 7/9 indicates a generally sound recent financial scorecard
• Profit growth of 19.40% outpacing sales growth of 10.57% hints at improving margins or operating leverage

Concerns

• Tiny scale: market cap of just ₹41 Cr and latest quarterly sales of ₹5 Cr leave little room for error in a leveraged lending business
• Debt/Equity is not available; for an NBFC, unknown leverage and borrowing structure is a serious blind spot
• P/B of 2.37 with the stock at its 52-week high offers no obvious margin of safety
• Promoter holding is not disclosed, creating governance and transparency concerns

AI Analysis

Looking at Qgo Finance, I am torn between the attractive earnings yield and the uncomfortable size. At ₹58.60, the stock trades at a P/E of 8.93, so the earnings yield is roughly 11%, while profit has grown 19.40% and sales 10.57%. The PEG of 0.60 suggests that, if these growth rates hold, the market is not asking very much. An 18.88% ROE on a book value of ₹24.76 is respectable, and a Piotroski F-score of 7/9 tells me recent financial statements are not flashing obvious red flags. The dividend yield is small at 1.14%, so I am not here for income. But Graham would demand a margin of safety. This is a ₹41 Cr market cap NBFC with quarterly sales of just ₹5 Cr and net profit of ₹1 Cr. That is tiny. In financial services, size itself is a safety factor; a small lender has less capacity to absorb credit shocks. I also cannot see debt-to-equity, and for an NBFC, leverage is both the lifeblood and the danger. Without that, I cannot judge true solvency. Promoter holding is also unavailable, which is a governance concern for a shareholder. The price sits at the top of the 52-week range at ₹58.60, so I would be buying at full optimism, not at a discount. Paying a P/B of 2.37 for a small lender with no clear moat leaves little room for error. This may be a small fast grower, but I need more evidence than one quarter. I would keep it on the watchlist, not the buy-list.

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