Interactive Fin (539692)

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

Key Financials

Strengths

• Trading below book value at P/B 0.90 against book value of ₹25.51 provides asset-side downside support.
• Piotroski F-Score of 7/9 signals decent financial health across profitability, leverage, and efficiency.
• ROCE of 19.69% and ROE of 11.62% indicate efficient use of capital despite the tiny scale.
• Trailing sales growth of 20.16% and profit growth of 28.57% with PEG 0.23 point to genuine earnings momentum if sustained.

Concerns

• Latest quarter net profit of ₹0 crore on ₹2 crore sales raises doubts about recent earnings quality and durability.
• Market cap of ₹7 crore makes the stock an illiquid microcap with limited institutional participation.
• Zero dividend yield means shareholders get no income while waiting for the story to play out.
• Promoter holding is N/A, and debt/equity is N/A, reducing confidence in ownership alignment and leverage picture.

AI Analysis

Looking at Interactive Fin, I start with the numbers, not the story. At ₹23, the market capitalization is only ₹7 crore, so this is a microcap in a specialized capital-market services niche. The valuation looks cheap on the surface: P/E of 5.58, price-to-book of 0.90, meaning I pay 90 paise for every rupee of book value of ₹25.51. The Piotroski F-Score of 7/9 suggests a reasonably sound balance sheet, and ROCE of 19.69% is respectable. Growth has been healthy too: sales up 20.16%, profit up 28.57%, giving a PEG of 0.23 that seems to scream undervalued if those numbers are durable. But Graham taught me to demand a margin of safety, not just a low multiple. The latest quarter shows sales of ₹2 crore and net profit of ₹0 crore. That is a red flag; trailing earnings may not be resilient. There is no dividend, promoter holding is not disclosed, and debt/equity is N/A, so transparency is inadequate for a business of this size. Book value gives some downside protection, but a ₹7 crore market-cap company in capital markets can be volatile and dependent on market cycles. I cannot call this a wonderful business with a real moat. It is a small, cyclical-looking asset play. If the zero-profit quarter is temporary and the growth trend resumes, the low P/E and high ROCE make it interesting. But I need more audited history, cash-flow visibility, and promoter commitment before treating this as a compounding machine. I would rather watch and wait than rely on a cheap ratio alone.

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