Niyogin Fintech (538772)

FairStock Score: 5/100 — RISKY

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

Key Financials

Strengths

• Latest quarter still generates ₹63 Cr of sales, indicating an existing operating base.
• Positive ROE of 0.41% shows at least marginal net profitability, not a loss-making entity.
• Book value of ₹29.26 per share provides some asset backing, though price is 2.35x book.
• Piotroski F-Score of 5/9 is moderate, not a failed business on all metrics.
• Reported profit growth of 101.74% suggests bottom-line improvement from a very low base.

Concerns

• Net profit is ₹0 Cr in the latest quarter and P/E is 0.00, so conventional earnings valuation is impossible.
• Sales fell 43.26%, showing severe business shrinkage.
• ROCE is -2.06% and ROE is just 0.41%, yet the stock trades at 2.35x book value.
• No dividend, debt/equity N/A, and promoter holding N/A leave key NBFC risk metrics hidden.
• Price of ₹68.70 is near the 52-week high of ₹82.40, offering little margin of safety.

AI Analysis

Look at the numbers, not the story. Niyogin Fintech's latest quarter shows sales of ₹63 crore and net profit of ₹0 crore. For a full year, sales have fallen 43.26%. A business that is shrinking and earning zero is not a business I want to own. The reported profit growth of 101.74% is meaningless because it starts from a base of near-zero earnings. As Graham would say, percentages must be checked against the actual rupee figures. The balance sheet gives some book value: ₹29.26 per share. But the market price is ₹68.70, which is 2.35 times book. For that premium, I expect high return on equity. Niyogin earns only 0.41% ROE. That is far below what I can get from a risk-free bank fixed deposit, and far below any reasonable required return. ROCE is even worse at -2.06%. Capital employed in the business is not earning its keep. No dividend means I get no cash return while I wait. I also notice several gaps. Debt/equity is N/A, promoter holding is N/A. In an NBFC, leverage and insider ownership are crucial. The Piotroski F-Score of 5/9 is mediocre—nothing to get excited about. The stock trades near the top of its 52-week range of ₹30.20 to ₹82.40, so there is no distressed price cushion. With a FairStock Score of 5/100, this is labelled risky, and the numbers agree. I would have to call this a potential turnaround, not a proven one. Sales are declining, profits are negligible, and capital returns are negative. There is no economic moat visible in these figures. I prefer businesses with durable advantages, high returns on capital, and honest growth. Niyogin does not pass that test. If I cannot see a clear path to high returns, I simply move on. In investing, the most powerful move is to say no.

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