Credent Global (539598)

FairStock Score: 60/100 — STEADY

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

Key Financials

Strengths

• P/E of 7.08 with ROE of 40.35% suggests strong earnings relative to market price
• Latest quarter net profit of ₹18 Cr on ₹26 Cr sales implies a very high 69% net margin
• Sales growth of 775% and profit growth of 1000% show powerful momentum
• Piotroski F-Score of 7/9 indicates generally sound financials on current reported numbers

Concerns

• P/B of 9.92 against book value of ₹11.82 means paying nearly 10 times net worth
• ROCE of just 5.77% is far below ROE, suggesting possible leverage or reliance on one-off/non-operating gains
• No dividend yield and promoter holding not disclosed leave return-to-shareholders and governance questions
• Explosive growth from a very small base makes the 0.01 PEG unreliable as a valuation guide

AI Analysis

When I look at Credent Global, the first thing that strikes me is a company growing at extraordinary speed, but I must ask whether this is a wonderful business at a sensible price or a small base effect dressed up. Sales grew 775% and profits grew 1000% - those are numbers that can happen when a company starts from a tiny base. The latest quarter shows sales of ₹26 Cr and net profit of ₹18 Cr, a 69% net margin, which is exceptional for any NBFC. If sustainable, it explains a 40% ROE. But my Graham instincts immediately check the balance sheet: book value is only ₹11.82 while the market price is ₹117.25, giving a P/B of 9.92. I am paying nearly ten times accounting net worth for a business with ROCE of just 5.77%. That gap tells me leverage or one-off items may be inflating return on equity, and leverage is dangerous in a lending business. The P/E of 7.08 looks cheap, and the PEG of 0.01 looks absurdly cheap, but I cannot trust a PEG when growth is this explosive and the base effect so small. There is no dividend, promoter holding is not disclosed, and the stock has already risen from ₹23.65 to ₹117.25, a roughly five-fold move. Mr. Market is euphoric. The FairStock Score of 60/100 is a sober 'steady' signal, not a ringing endorsement. I prefer a fair price for a great business, but here I cannot determine moat durability from these figures. I would wait, demand more quarters of proof, and watch leverage and disclosure before committing.

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