Capfin India (539198)

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

Key Financials

Strengths

• Positive ROCE of 3.70% suggests some operating return on capital employed, even though ROE is deeply negative.
• No dividend payout conserves cash while the company shrinks and searches for stability.
• Tiny market cap of ₹107 Cr means even a small, profitable lending niche could materially change per-share value if management executes.
• Being listed on NSE/BSE gives transparent price discovery and allows monitoring of the stock's speculative moves.

Concerns

• Sales growth is -25% and the latest quarter shows ₹0 Cr of sales and ₹-0 Cr profit, indicating the business engine is currently not producing tangible earnings.
• P/B of 33.49 against book value of ₹10.81 is an extreme premium for negative ROE of -21.37%.
• Profit growth of -171.43% and Piotroski F-Score of 3/9 point to deteriorating fundamentals and poor financial health.
• Promoter holding and debt/equity data are unavailable, so leverage, ownership, and governance risks cannot be assessed.

AI Analysis

At ₹362, Capfin India is a micro-cap NBFC with a market cap of only ₹107 crore. I look for businesses I can understand, with consistent earning power and a durable moat. This business fails those tests today. The P/E of 0.00 is not a cheap valuation; it is the absence of earnings. The latest quarter shows ₹0 crore in sales and a negligible loss, sales growth is -25%, and profit growth is -171.43%. So the direction is backwards, not forward. ROE is -21.37%, and book value is only ₹10.81 per share. Paying ₹362 means paying 33.49 times book for a company whose return on equity is negative. Graham would call that speculation, not investment. The Piotroski F-Score of 3/9 reinforces the picture: weak profitability, weak efficiency, and financial stress. I see no moat. A small NBFC must have low-cost funding, disciplined underwriting, or a protected niche. None is evident from these numbers. Debt/equity is unavailable, promoter holding is undisclosed, and the dividend yield is zero, so I cannot fully verify capital structure or who controls the business. The one positive is ROCE of 3.70%, but that tiny return does not compensate for equity losses. The 52-week range of ₹97.30 to ₹362.00 shows a stock that has moved far ahead of underlying fundamentals. This is not a stalwart, a fast grower, or a cheap asset play; it is a troubled company. I would not buy at this price. I would watch for an actual turnaround: revenue restart, narrowing losses, stable book value, and clearer disclosures. Until then, there is no margin of safety.

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