Rita Finance and (543256)

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

Key Financials

Strengths

• Piotroski F-Score of 7/9 is the clearest positive signal; it suggests the company is not in acute financial distress.
• Current price of ₹18.24 is about 30% below the 52-week high of ₹26.25, so some froth has been removed from the valuation.
• A P/E of 21.95, though high, implies there is a small trailing earnings base behind the ₹19 crore market cap rather than pure zero-earnings shell.

Concerns

• Latest quarter shows ₹0 crore sales and ₹0 crore net profit, with sales growth and profit growth both 0.00%; there is no demonstrated engine of compounding.
• ROCE of only 4.62% is below what a passive fixed-income instrument can offer, and dividend yield is 0.00%, so shareholders get no income while waiting.
• Book value, debt/equity, ROE and promoter holding are all N/A, leaving Graham's core balance-sheet tests impossible to perform.
• A 21.95 P/E with zero growth gives an earnings yield of only about 4.6%, offering no margin of safety for a micro-cap NBFC.

AI Analysis

Looking at Rita Finance, I see a tiny non-banking financial company with a ₹19 crore market cap and a price of ₹18.24. The first thing that bothers me is growth: sales growth is 0.00%, profit growth is 0.00%, the latest quarter shows ₹0 crore revenue and ₹0 crore net profit, and there is no dividend. The market is willing to pay 21.95 times earnings, which gives me an initial earnings yield of only about 4.6%. For that, I get a business earning just 4.62% on capital employed. Frankly, a good fixed deposit gets close to that with no risk. Graham would ask: where is the margin of safety? I cannot find it. The P/E of 21.95 might be acceptable if this were a wonderful compounder, but this is not growing and is not paying me anything to wait. The Piotroski F-Score of 7/9 is the only bright spot. It suggests the company is not drowning in financial stress, but the F-score was never designed to tell me whether a business has a durable moat. With no book value, no debt-equity ratio, no promoter holding, and no ROE disclosed, I cannot perform even a basic balance-sheet test. It is like buying a farm when the seller will not tell me the soil quality or the mortgage on it. I will ignore the 0.14 PEG ratio because it contradicts the reported 0.00% profit growth; it is an arithmetic illusion. At ₹18.24, the stock sits below the midpoint of its 52-week range, but a lower price alone is not cheapness. For a small NBFC with zero visible growth, a 21.95 P/E is not an investment; it is hope. I would need several quarters of real earnings, honest disclosures, and proof that the ₹19 crore market cap is supported by tangible net worth before I could call this a value candidate. Until then, this is a pass.

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