Vibrant Glo. Cap (538732)

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

Key Financials

Strengths

• Recent profit growth of 124.83% shows some operating leverage or recovery from a low base.
• Piotroski F-Score of 6/9 points to acceptable financial health, not a deeply distressed balance sheet.
• P/B of 1.25 with book value ₹71.28 gives a modest asset cushion for a small NBFC.
• Dividend yield of 1.94% provides some return while waiting.

Concerns

• Sales are down 20.40%, so profit growth is not backed by expanding business activity.
• ROE of 6.46% and ROCE of 3.76% are weak for a company trading at 36.72 times earnings.
• D/E is not available, and promoter holding is not disclosed, so leverage and alignment cannot be judged.
• P/E of 36.72 is expensive when latest quarter sales of ₹35 Cr and profit of ₹3 Cr do not suggest a compounding machine.

AI Analysis

At ₹89, Vibrant Glo Cap has a market cap of ₹204 Cr. That is not an unreasonable size for a small Indian NBFC, but small size alone is no reason to buy. The stock trades at 36.72 times earnings and 1.25 times book. For a lender, I want a business that earns much more on its equity and deploys capital with a clear edge. Here I see ROE of 6.46% and ROCE of 3.76%. Those are poor returns; a bank or NBFC should not be valued as a growth machine on such numbers. The 124.83% profit growth is headline-worthy, but sales have fallen 20.40%. When revenue shrinks, a jump in net profit often comes from a weak base, reversals, or cost cuts, not from a durable franchise. The latest quarter shows ₹35 Cr in sales and ₹3 Cr in profit, which gives a respectable quarterly margin but not enough to justify a P/E of 36.72 after annualising. The book value of ₹71.28 means the market is not paying an outrageous multiple to book, and the dividend yield of 1.94% is a small token, but neither cures the core problem. In an NBFC, the balance sheet is the business. Debt/equity is not available and promoter holding is not available, so I cannot verify leverage or owner alignment. The 52-week range of ₹28.10 to ₹89.00 tells me the market has already re-rated this stock sharply. I prefer buying when the road is quiet, not after the cheering starts. Graham taught me to measure a business by its demonstrated earning power, margin of safety, and conservative financing. Vibrant Glo does not pass that test today. It may become a good turnaround if revenue recovers and returns rise, but I need proof, not hope.

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