NIS Management (544495)

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

Key Financials

Strengths

• Low P/E of 6.47 with a ₹123 Cr market cap offers statistical cheapness.
• ROCE of 11.99% suggests reasonable operating capital efficiency.
• Latest quarter is profitable: ₹3 Cr net profit on ₹103 Cr sales.
• Sales growth of 2.66% shows modest top-line stability.

Concerns

• Net profit fell 20.73%, and the latest quarterly net margin is thin at roughly 2.9%.
• Piotroski F-Score of 4/9 points to weak financial health.
• No dividend, and insufficient data on book value, ROE, debt/equity, and promoter holding creates low visibility.
• PEG of 2.43 with low single-digit growth undermines the apparent valuation cheapness.

AI Analysis

At ₹62.30, NIS Management has a market cap of only ₹123 Cr and trades at a P/E of 6.47. At first glance, that looks like a Graham-style bargain. But I have learned to be suspicious of cheap stocks when the fundamentals underneath are cloudy. The company earned ₹3 Cr net profit on ₹103 Cr sales in the latest quarter, a thin margin of under 3%. Trailing profit growth is down 20.73%, while sales growth is just 2.66%. So this is a slow, shrinking-earnings business, not a compounding machine. ROCE of 11.99% is respectable, but with no debt/equity, book value, ROE, or promoter holding data, I cannot judge the true quality of the balance sheet or whether management is aligned with shareholders. The Piotroski F-Score of 4/9 reinforces my caution — the financial health is weak, not robust. There is no dividend to compensate while I wait. The PEG ratio of 2.43 suggests that if growth is only in the low single digits, the shares are not as cheap as the P/E alone implies. Ben Graham demanded a margin of safety. Here, the margin of safety is undermined by falling profits, lack of transparency, and a thin net margin. I do not need to own every cheap stock. I need to own only those where the business can generate growing earnings with a durable advantage. NIS Management appears to be a small, slow-growing consumer services company with no clear moat, and the numbers do not yet speak of a turnaround. I would put this on the watchlist, not in the portfolio. If future quarters show stable margins, stronger profitability, and management providing full balance-sheet transparency, I would revisit. Until then, the low P/E is an invitation, but not a compelling reason to act.

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