Purshottam Inves (538647)

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

Key Financials

Strengths

• Trading at P/B of 0.66, a 34% discount to book value of ₹62.64
• Piotroski F-score of 7/9 indicates recent improvement in financial health
• Strong reported growth: sales up 120.97% and profit up 530.36%
• Latest quarter shows ₹4 Cr sales and ₹2 Cr net profit, suggesting recent momentum

Concerns

• ROE of just 1.84% and ROCE of 3.03% show weak value generation
• Trailing P/E of 35.18 is expensive despite growth, with implied annual earnings under ₹1 Cr
• No dividend yield; minority shareholders receive no cash return
• Lack of promoter holding and debt/equity data makes governance and leverage unclear

AI Analysis

At ₹41.55 with a book value of ₹62.64, this appears to be an asset play on paper. But buying a rupee of book at sixty-six paise is only attractive if that book is worth a rupee and the management can earn decent returns on it. Here, ROE is just 1.84% and ROCE is 3.03% — this is not a business generating compelling returns on capital. The 120.97% sales growth and 530.36% profit growth sound exciting, but they come from a small base. The trailing P/E of 35.18 implies annual earnings of less than ₹1 Cr, even though the latest quarter reported ₹4 Cr sales and ₹2 Cr net profit. I do not trust a single quarterly spike; I need years of consistent evidence. The Piotroski F-score of 7/9 suggests recent fundamental improvement, and the price-to-book discount is real, but the lack of a dividend, the absence of promoter holding disclosure, and unavailable debt/equity data leave me uneasy. A PEG of 0.11 is only meaningful if the growth is durable; in a tiny NBFC with low returns and a market cap of just ₹26 Cr, growth can reverse quickly. I would need a much larger margin of safety, better transparency on asset quality, and proof that returns on equity are improving before acting. For now, this is a possible asset play, not a compounding machine.

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