Goenka Business (538787)

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

Key Financials

Strengths

• Exceptional capital efficiency: ROE 42.09% and ROCE 52.31%
• Explosive revenue and profit momentum: sales growth 744.39%, profit growth 470.83%; latest quarter ₹82 Cr sales and ₹3 Cr profit
• Piotroski F-Score 7/9 indicates decent fundamental health
• Price-to-book 0.49 with book value ₹20.30 offers a potential cushion if assets are genuine
• PEG 0.04 suggests the market has not fully repriced the current growth rate

Concerns

• Important data gaps: debt/equity N/A, promoter holding N/A, FairStock Score N/A—unacceptable for an NBFC
• Internal inconsistency among P/E 26.39, ROE 42.09%, P/B 0.49, and latest quarterly profit ₹3 Cr; reported numbers need verification
• Micro-cap risk: ₹13 Cr market cap can make even a small bad loan or governance issue lethal
• Dividend yield 0.00%, so shareholders depend entirely on uncertain future growth

AI Analysis

As a value investor, I refuse to be seduced by a growth rate alone. Goenka Business shows spectacular headline numbers: sales up 744.39%, profit up 470.83%, ROE 42.09%, and ROCE 52.31%. A Piotroski F-Score of 7/9 also points to improving fundamentals. But the numbers do not hang together. At ₹9.95, market cap is ₹13 crore, while book value is ₹20.30 and P/B is 0.49. If this NBFC truly earns 42% on equity, the market should assign a premium, not a 51% discount. The stated P/E of 26.39 is equally hard to reconcile with a latest-quarter net profit of ₹3 crore; that would suggest annual earnings far higher than a 26.39 multiple implies. Graham would call this a trap: relying on figures you cannot reconcile is dangerous. For an NBFC, debt/equity is N/A, promoter holding is N/A, and FairStock Score is N/A. Those are not footnotes; they are the core of the decision. Without leverage and governance details, I cannot judge asset quality or whether the growth is sustainable. The PEG of 0.04 and 0% dividend yield tell me the market is pricing in future growth, but a ₹13 crore micro-cap has no cushion for error. It may be a fast grower, and it may be undervalued on book value and forward earnings, but the missing data and internal inconsistencies prevent a margin of safety. In Buffett's terms, risk comes from not knowing what you own. I would wait for audited annual accounts, a clear capital structure, and proof that this growth is durable before investing a rupee.

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