Decillion Financ (539190)

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

Key Financials

Strengths

• Trading at a 20% discount to book value: ₹30.02 price vs ₹37.30 book value
• Positive book value of ₹37.30 provides an asset cushion if the loan book is sound
• Profit grew 16.67% year-on-year, albeit off a very small base
• Piotroski F-Score of 6/9 suggests adequate financial fundamentals
• Small market cap of ₹11 crore may offer niche balance-sheet flexibility

Concerns

• Latest quarter sales and net profit are essentially ₹0 crore, indicating dormant or negligible operations
• ROE of 2.19% and ROCE of 0.98% are far below any acceptable cost of equity
• P/E of 60.93 and PEG of 3.66 imply the stock is expensive despite poor earnings power
• Current price is below the stated 52-week low of ₹39, with promoter holding undisclosed

AI Analysis

I start with margin of safety. At ₹30.02, this stock trades below its book value of ₹37.30 — I am paying 80 paise for a rupee of net worth. But a low P/B is only interesting if that book value can earn a decent return. Here, ROE is just 2.19% and ROCE is 0.98%, far below what a reasonable owner would demand. This is not a wonderful business; it is a micro-cap NBFC with a market cap of only ₹11 crore. The latest quarter shows sales of ₹0 crore and net profit of ₹0 crore, essentially no operating activity. Sales are shrinking by 3.85%, and even though profit grew 16.67%, that is off a tiny base. The P/E of 60.93 and PEG of 3.66 suggest the market is still pricing in growth that this business has not proven it can deliver. There is no dividend, and promoter holding is unavailable, so transparency is a concern. The Piotroski F-Score of 6/9 gives a modest sign of financial soundness, but with such low returns and falling revenues, book value can erode over time. This looks like a classic cigar butt — an asset play where the main attraction is the discount to book. But I learned long ago that a cheap asset is not worth much if it cannot generate earnings. I would need strong evidence about loan book quality, asset impairments, and why the stock trades below its 52-week range. Until then, the apparent value is not sufficient for me to act.

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