Neil Industries (539016)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹16.16, Neil Industries trades at barely 56% of its book value of ₹28.91. On the surface, that looks like a Graham-style bargain. But Benjamin Graham taught me that a low price-to-book can be a value trap if the business cannot earn decent returns on its capital. Here, ROE is just 2.25% and ROCE is 3.37% — this NBFC is earning very little on shareholder money. The P/E of 9.92 looks modest, but profit growth is negative at -14.63%, and the latest quarter shows sales of only ₹1 Cr and net profit of roughly ₹0 Cr. Sales growth of 29.87% is meaningless if it does not convert into profits. Even the PEG of 0.33 depends on that sales growth becoming earnings growth, which has not happened. The Piotroski F-score of 4/9 reinforces my caution. There is no dividend to compensate shareholders while waiting. With a market cap of ₹32 Cr, this is a micro-cap, and I need strong evidence of durable earnings before calling it a moat. The stock is at its 52-week high of ₹16.16, up from ₹5.55, so the market has already re-rated it. Promoter holding and debt-equity data are not available, which itself is a yellow flag for a small finance company. My philosophy is not to buy cheap, low-return assets; I want a good business at a fair price. Today, Neil Industries looks more like an asset play with potential turnaround characteristics than a quality compounder. I would wait for clear earnings improvement before committing capital.

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