Ashika Credit (543766)

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

Key Financials

Strengths

• Positive book value of ₹51.42 per share provides a measurable asset base.
• Latest quarter revenue of ₹8 crore shows the NBFC still has some operating activity.
• ROE of 3.70%, though low, is positive; existing equity is not being rapidly eroded.
• No dividend payout means capital is retained for potential redeployment.

Concerns

• P/E of 0.00 and latest net profit of roughly ₹0 crore mean there is no current earnings power to value.
• ROCE of -22.15% indicates capital is being destroyed at the operating level.
• Piotroski F-Score of 2/9 signals fragile financial health.
• Current price of ₹118.29 sits below the stated 52-week range of ₹285.80–₹417.00, an unexplained red flag.

AI Analysis

Let me start with what I can see. Ashika Credit is a small NBFC with a market cap of ₹301 crore. It has a positive book value of ₹51.42 per share, but I am being asked to pay ₹118.29—2.30 times book. For that premium, I expect a business that earns attractive returns on capital. Instead, I see ROE of only 3.70% and ROCE of -22.15%. The P/E ratio is 0.00, and the latest quarter shows sales of ₹8 crore and net profit of roughly ₹0 crore. Simply put, there is no current earnings power to value. Graham's discipline was to buy assets at a discount, or earnings at a reasonable price. This is neither. The Piotroski F-Score of 2/9 reinforces my caution; it points to weak financial health. Sales and profit growth are exactly 0.00%, and there is no dividend yield. The shareholder receives no income and no growth. The stated 52-week range of ₹285.80 to ₹417.00 is above the current price of ₹118.29. That is a red flag. Either the data is inconsistent, or there has been a sharp break in the business. I cannot rely on either possibility. A zero-earning NBFC with negative ROCE and a 2/9 F-score is not a wonderful business. To buy it at a premium to book, I would need a clear path to much higher returns on capital. I see none. This is not an investment; it is a speculation. My rule is to be a buyer only when the numbers offer a margin of safety. Here, they don't. I will wait for evidence of a genuine turnaround before this becomes interesting.

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