5paisa Capital (5PAISA)
CyclicalFairStock Score: 20/100 — RISKY
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹383.8 |
| Market Cap | ₹1,799.23 Cr |
| P/E Ratio | 29.41 |
| ROCE | 13.55% |
| ROE | 38.18% |
| Dividend Yield | 0% |
| Profit Growth | -29.3% |
| Debt/Equity | 0.58 |
| Sales Growth | 13.4% |
| Promoter Holding | 32.78% |
| 52-Week Range | ₹245.5 — ₹416.65 |
| Sector | Capital Markets |
| Book Value | ₹14.86 |
Strengths
- Strong ROE of 38.18%, indicating efficient use of a small equity base.
- Latest quarter is profitable: ₹12 Cr net profit on ₹79 Cr sales, roughly 15% net margin.
- Debt/Equity of 0.46 is not extremely high for a financial intermediary.
- Promoter holding of 32.78% provides some residual alignment with minority shareholders.
Concerns
- Declining operations: sales down 7.02% and profit down 23.70%.
- Extreme valuation: P/B of 22.77 and P/E of 23.09 with no dividend yield.
- Piotroski F-Score of 3/9 and FairStock Score of 1/100 point to weak financial health and high risk.
- ROCE of 13.55% is not impressive enough to justify a ₹1,000 Cr market cap with shrinking earnings.
AI Analysis
I try to buy a business I understand, at a price that leaves a margin of safety. 5paisa is a stockbroker, a business whose earnings ride on market volumes and investor sentiment. The numbers here do not excite me. While the company earned a net profit of ₹12 Cr on sales of ₹79 Cr in the latest quarter, the trend is going the wrong way: sales fell 7.02% and profit fell 23.70%. Graham taught me to be most careful when the present looks good but the trajectory is deteriorating. The return on equity of 38.18% looks impressive, but it is built on a very small book value of ₹14.86 per share. At ₹338.40, I am being asked to pay over 22 times book for a company whose earnings are shrinking. That leaves no margin of safety. A Piotroski F-Score of 3 out of 9 reinforces my concern about financial health. Debt to equity of 0.46 is not alarming, but for a business with declining profits and zero dividend, every rupee of leverage matters. At 32.78%, promoter holding gives some skin in the game, but not overwhelming comfort. The ROCE of 13.55% is mediocre for a company valued like a compounder. The so-called FairStock Score of 1 out of 100 flags this as risky, and I agree. In stockbroking, today's profits can vanish when market activity slows. Without a durable moat, a crumbling growth profile, and an expensive share price, I would keep 5paisa on my watch list, not in my portfolio.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer