Kapil Raj Financ (539679)

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

Key Financials

Strengths

• Reported profit growth of 366.67% and PEG of 0.12 indicate recent earnings acceleration, albeit from a very small base.
• Piotroski F-Score of 5/9 is mid-range, suggesting the company is not in acute financial distress.
• ROE is positive at 4.06%, so equity is still earning a small positive return.

Concerns

• Valuation looks extreme: P/E of 45.35 and P/B of 17.62 against book value of ₹1.32 leave no margin of safety.
• Latest quarter reports sales of ₹0 Cr and net profit of ₹0 Cr, and sales growth is 0.00%; there is no visible operating engine.
• ROCE is negative at -0.07%, and ROE of 4.06% is far below what an NBFC needs to compound value.
• No dividend, promoter holding N/A, and FairStock score INSUFFICIENT_DATA make transparency poor for a micro-cap.

AI Analysis

Let me start with what this is not: a business I can value with any confidence. Kapil Raj Financ trades at ₹23.26, giving a market cap of ₹26 Cr. For that price, I receive book value of just ₹1.32 per share, so the market is demanding 17.62 times net worth for an NBFC earning only 4.06% on equity and a negative 0.07% on capital employed. That is the opposite of a wonderful business. A wonderful business has a moat and high returns on tangible capital. This one shows no visible moat: the latest quarter has sales of ₹0 Cr and net profit of ₹0 Cr, and sales growth is 0.00%. The 366.67% profit growth sounds spectacular, but with a negligible base, percentages mislead. The PEG ratio of 0.12 is just a mathematical result of that distorted growth, not proof of cheapness. Financial health is mediocre: Piotroski F-Score of 5/9 is neither strong nor terrible. Promoter holding is N/A, and the FairStock score says INSUFFICIENT_DATA. In a micro-cap NBFC, ownership and audited financials are not optional; they are guardrails. There is no dividend to compensate while I wait. The price has moved from ₹1.80 to ₹23.26 in 52 weeks. A nearly 13-fold price rise without operating evidence is speculation, not wealth creation. At a P/E of 45.35, the stock is priced for flawless execution, yet the business has no current sales engine, low ROE, and negative ROCE. Graham taught me to buy with a margin of safety. Here I see a ₹26 Cr market cap against ₹1.32 book value and no dependable earnings power. This is a possible turnaround, but turnarounds seldom turn. I would pass and wait for a business whose numbers speak for themselves.

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