Richfield Fin (539435)

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

Key Financials

Strengths

• Sales growth of 167.86% shows the business is expanding, albeit from a very small base.
• Piotroski F-Score of 7/9 suggests reasonably healthy fundamentals across profitability, leverage, and efficiency.
• Book value of ₹11.16 per share provides a positive equity base, even if the price is far above it.
• Latest quarter sales of ₹3 Cr confirm some ongoing operating activity, not a shell entity.

Concerns

• P/B of 3.93 with ROE of only 7.50% means investors are paying nearly 4 times book for a business earning sub-10% returns on equity.
• Latest quarter net profit is reported as ₹0 Cr, making the 800% profit growth figure look fragile and one-offish.
• P/E of 35.86 is rich; the low-looking PEG of 0.07 is an illusion created by a tiny, unsustainable profit base.
• Dividend yield is 0.00% and promoter holding is not disclosed, leaving governance and shareholder returns opaque.

AI Analysis

At first glance, a 167.86% sales jump and 800% profit growth makes Richfield Fin look like a wonder. But I've learned that spectacular percentages from a tiny base often conceal more than they reveal. The latest quarter tells a sobering story: sales of ₹3 Cr and net profit of ₹0 Cr. This is a ₹16 Cr market cap business selling at ₹43.84 against book value of ₹11.16—over 3.9 times book—while earning an ROE of only 7.50%. A business that earns 7.5% on equity is not worth nearly four times book unless it has wonderful prospects and a durable moat. I see no evidence of moat here; the numbers show a low-return, no-dividend, promoter-holding-not-disclosed financial services micro-cap. The P/E of 35.86 and PEG of 0.07 might tempt a growth investor, but the 800% profit growth is from an almost nothing base, and the latest quarter's zero profit reminds us how quickly growth can vanish. Piotroski F-score of 7 is a positive sign on balance-sheet health, but it doesn't tell me the business can earn high returns on capital over ten years. I like to buy a wonderful business at a fair price, not a questionable business at a rich price. At 4 times book and 36 times earnings, the margin of safety is missing. If the company can sustain growth, improve ROE meaningfully, and show consistent profits—not just one quarter—then I'll revisit. Until then, this is a speculation, not an investment.

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