Krishna Capital (539384)

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

Key Financials

Strengths

• Piotroski F-Score of 7/9 is a positive, if limited, signal of balance-sheet health and recent financial discipline.
• Book value of ₹15.67 provides a tangible reference; at ₹22.19 the stock is not wildly detached from asset value.
• At ₹56.45 the implied P/B was about 3.6x, while today's 1.42x shows a large market de-rating already.
• As a tiny NBFC with ₹8 Cr market cap, even a small profitable lending book could meaningfully change per-share earnings.

Concerns

• Latest quarter shows sales ₹0 and net profit ₹0; there is no visible current earnings power.
• ROE of 2.54% and ROCE of 0.16% are far below any acceptable return on capital.
• P/E of 891 and PEG of 7.64 are expensive relative to zero growth and negligible profitability.
• Promoter holding is N/A and dividend yield is zero, leaving retail investors with poor transparency and no income.

AI Analysis

Reading Krishna Capital, I am reminded of Graham's warning: price is what you pay, value is what you get. Here, price is ₹22.19, market cap ₹8 Cr, and book value ₹15.67. That makes the P/B 1.42; you are paying 42% above stated book for an NBFC whose latest quarter shows sales ₹0 and net profit ₹0. Reported earnings are so thin that the P/E stands at 891. This is not a franchise with pricing power or a moat; it looks more like a shell-like financial entity at best. The ROE of 2.54% and ROCE of 0.16% tell me management cannot deploy capital into any worthwhile lending or investment activity. Sales growth and profit growth are both 0.00%, and there is zero dividend. I normally like a Piotroski score of 7/9, but that is a snapshot of financial health, not proof of durable economic value. The shares have fallen from ₹56.45 to ₹22.19, but a nearly 60% decline only matters if underlying value is heading upward. With promoter holding not available, minority investors are flying blind. Graham would ask whether the ₹15.67 book value is honestly stated and realisable. In an NBFC, that depends on the quality of financial assets; we cannot see that in the data supplied. A P/B of 1.42 gives no margin of safety. This is not a slow grower or stalwart; it is an asset play, and a conditional one at that. I would need evidence of actual operations, positive earnings, and full transparency before investing one rupee.

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