Econo Trade Indi (538708)

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

Key Financials

Strengths

• Price-to-book of 0.38 offers a deep margin of safety against net asset value of ₹24.13
• P/E of 5.28 and PEG of 0.26 indicate very cheap earnings relative to reported profit growth of 28%
• Piotroski F-Score of 7/9 suggests broadly sound financials and no major red flags in fundamentals
• Sales growth of 11.85% shows some momentum, albeit from a very small base

Concerns

• ROE of 5.74% and ROCE of 7.71% show weak returns on capital, limiting intrinsic business quality
• Zero dividend yield means shareholders earn nothing while waiting for a re-rating
• Extremely small market cap of ₹17 Cr raises liquidity, volatility and corporate governance risks
• Promoter holding and debt/equity are not disclosed, leaving critical NBFC risk factors unverifiable

AI Analysis

At ₹9.05, Econo Trade Indi is the sort of microcap that would make Graham look twice: I am paying only 38 paise for every rupee of book value, and the P/E is barely 5.3. Book value is ₹24.13, so the market is in a deeply skeptical mood. That is often where value hides. But being cheap is not enough; I need the business to use that book value well. Here the return on equity is only 5.74%, and ROCE is 7.71%—far from a wonderful enterprise. A wonderful business earns high returns on tangible assets; this one does not, so the discount may simply reflect mediocre capital allocation. The growth figures look encouraging on the surface: sales up 11.85% and profit up 28%, with a PEG of 0.26. But the absolute base is tiny—the latest quarter shows sales of ₹2 Cr and net profit of ₹1 Cr. I cannot build a cathedral on a pile of pebbles. Also, the dividend yield is zero; as a minority shareholder, I receive nothing while waiting for the market to rerate. The Piotroski score of 7/9 is a point in favour. It suggests the company's financial position has not deteriorated, and the low P/B gives a margin of safety if asset quality holds. Yet I know NBFCs are all about the quality of receivables and leverage. Debt/equity is not available, promoter holding is N/A—those are gaps I must not ignore. With a market cap of only ₹17 Cr, this is a thin, illiquid stock. I would treat it as a small speculative-value basket, not a core holding.

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