Classic Leasing (540481)

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

Key Financials

Strengths

• Reported ROE of 25.20% indicates past capital efficiency if earnings are credible.
• Piotroski F-score of 7/9 suggests decent recent fundamental health on the available metrics.
• Market cap of ₹7 Cr gives a very small base, so even modest absolute earnings can move returns strongly.
• P/E of 17.20 is not extreme on a headline basis, though current earnings are zero.

Concerns

• Latest quarter sales and net profit are ₹0 Cr, leaving no visible current earnings power.
• Sales and profit growth are 0.00%, and PEG of 0.24 is inconsistent with that reported lack of growth.
• Current price of ₹22.81 is below the stated 52-week low of ₹29.16, a significant negative price signal.
• No dividend, no promoter holding data, and FairStock Score N/A due to insufficient data reduce transparency.

AI Analysis

Classic Leasing is a ₹7 crore micro-cap in financial services, and the first question I always ask is: what does this business earn? The latest quarter shows sales of ₹0 crore and net profit of ₹0 crore. Annual sales and profit growth are also 0.00%. I cannot value a business with no visible earnings. The P/E of 17.20 and P/B of 2.65 appear to be built on stale annual earnings, not current reality. Book value is ₹8.62, yet the market asks ₹22.81 for every share – a premium of 2.65 times book. That premium can only be justified by future earnings, and there are none on the table today. The 25.20% ROE looks appealing, but with ROCE at only 10.78% and no debt-to-equity disclosed, I can't tell how that return is generated. The price is ₹22.81, below the stated 52-week low of ₹29.16. That tells me the market is repricing this stock sharply. The Piotroski F-score of 7/9 suggests some recent financial health, but a score on a tiny balance sheet with zero current revenue is not a margin of safety. There is no dividend, promoter holding is not disclosed, and the FairStock score is insufficient data. The PEG ratio of 0.24 is meaningless without growth. Benjamin Graham taught me to invest with facts, not hope. Here, facts are too few. I would need to see real revenue, real profits, and a clear explanation of the business before I would invest a rupee. At best this is a speculative turnaround; at worst a value trap. I will pass.

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