Regency Fincorp (540175)

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

Key Financials

Strengths

• Sales growth of 67.25% and profit growth of 230.10% demonstrate strong recent operating momentum.
• Piotroski F-Score of 7/9 points to decent financial health across profitability, leverage, and efficiency.
• ROE of 18.91% is attractive, while P/B of 1.77 means the market is not paying an extreme premium over book value.
• Latest quarter net profit of ₹3 Cr on sales of ₹9 Cr implies a strong ~33% net margin if sustained.
• PEG ratio of 0.11 suggests current valuation is not stretched if the high profit growth continues.

Concerns

• Current price of ₹14.74 is below the stated 52-week low of ₹22.71, indicating possible data inconsistency or severe market de-rating.
• No promoter holding or debt/equity data is available, which is a transparency red flag for a financial company.
• Zero dividend means minority shareholders depend entirely on capital appreciation.
• P/E of 17.04 is not a deep-value multiple, and the recent abnormal profit growth may not be sustainable.
• ROCE of 8.15% is weak, and the underlying loan asset quality is unknown for this financial services firm.

AI Analysis

Let me apply the same lens I use for any business: what are the economics, who is the moat, and does price give a margin of safety? Regency Fincorp is a tiny financial-services player—market cap just ₹71 crore. The headline numbers are tempting: sales grew 67.25%, profit grew 230.10%, and ROE is 18.91%. A Piotroski score of 7/9 suggests the recent figures are not purely window-dressing. But I must stop and ask: what is this business really worth? Book value is ₹8.35; at ₹14.74 the market is paying 1.77 times book. The P/E is 17.04. For a business this size, with no dividend, no promoter-holding disclosure, and no debt-equity ratio reported, that is not a large margin of safety—it is hope. The stated 52-week range of ₹22.71–₹46.69 with the price now ₹14.74 is a red flag: either the data is stale or the market has marked this down sharply for reasons not visible in the figures I have been given. A true value investor does not buy simply because the PEG ratio is 0.11; he requires trust and transparency. A financial company is an exercise in trust—asset quality, governance, and capital adequacy matter more than one quarter's profit. I would need to see consistent growth, clean books, and a price below conservative intrinsic value. This looks like a fast grower, but in the Indian small-cap financial space, fast grower can quickly become fast loser if economics sour. I would leave it on the watchlist, not act.

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