Kanungo Financi. (540515)

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

Key Financials

Strengths

• Trades at ₹6.99 against book value of ₹11.09, so the P/B of 0.63 gives a tangible margin of safety if assets are honestly valued.
• Piotroski F-Score of 6/9 suggests acceptable financial health rather than acute distress.
• PEG ratio of 0.28 looks optically cheap if the reported 60% profit growth continues, though the earnings base is very small.
• Price near the 52-week low of ₹6.84 means the stock is already reflecting pessimism.

Concerns

• Latest quarter sales and net profit are ₹0 Cr, and sales growth is 0.00%, so there is no visible operating engine.
• ROE of 5.09% and ROCE of 6.20% are far too low for a financial intermediary to create real owner value.
• No dividend, promoter holding N/A, and a ₹3 crore market cap raise governance, disclosure, and liquidity risks.
• P/E of 16.74 for a stagnant, asset-play-like business is not an obvious bargain despite the low P/B.

AI Analysis

Kanungo Financi is a tiny pocket-sized finance company, with a market cap of ₹3 crore and a share price of ₹6.99. The most striking Graham characteristic is the balance sheet: book value per share is ₹11.09, so the stock trades at a 37% discount to book, a P/B of 0.63. That sounds like an asset play, and I will give it a closer look. But a discount to book is only a starting point. A financial firm should earn respectable returns on that book. Here ROE is just 5.09% and ROCE is 6.20% — far below what I would demand from an owner. Meanwhile sales growth is 0.00%, and the latest quarter shows sales and net profit of ₹0 Cr. The 60% profit growth is flattering only because the profit base is minuscule; the P/E of 16.74 is not cheap for a stagnant earner. There is no dividend, so patient shareholders are not being paid to wait. The Piotroski F-score of 6/9 indicates the financial position is not distressed, but it is not a high-quality compounder either. At the 52-week low of ₹6.84 and with ₹3 crore market cap, this is an illiquid, small-cap situation. Graham would say: buy with a margin of safety, but also require competent management and a visible path to better profitability. I find neither here. The asset value provides some downside cushion, but the business quality is weak. I would classify it as an asset play, not a fast grower. The only sensible course is to monitor quarterly operating numbers and wait either for the company to prove it can earn a much better ROE or for the market to unlock value through corporate action. Until then, the discount to book is real, but cheap is not the same as good.

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