Akme Fintrade (AFIL)

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

Key Financials

Strengths

• P/E of 8.06 and P/B of 1.17 provide a Graham-style statistical discount; shares trade near book value of ₹8.03.
• Latest quarter sales of ₹40 Cr and net profit of ₹10 Cr show healthy recent operating momentum.
• Sales growth of 41.33% is strong for a small NBFC, and PEG of 0.28 suggests the market is pricing in little growth.
• Piotroski F-Score of 7/9 indicates decent financial health across profitability and capital structure measures.
• ROCE of 14.40% is reasonable and debt/equity of 0.96 is manageable, though not conservative.

Concerns

• Profit growth of 16.35% lags sales growth of 41.33%, indicating weaker conversion of revenue into earnings.
• ROE of only 10.53% is mediocre for an NBFC using nearly 1:1 debt/equity (0.96).
• No dividend is being paid; total return depends entirely on capital gains.
• Promoter holding of 41.20% leaves a large minority free-float and gives no evidence of a controlling owner with dominant skin in the game.

AI Analysis

At ₹9.43, Akme Fintrade is a small NBFC that Graham would call statistically cheap but only if the numbers are honest. The company trades at 8.06 times earnings and 1.17 times book value, with book value of ₹8.03. That gives a limited margin of safety, not a deep one. The latest quarter shows sales of ₹40 Cr and net profit of ₹10 Cr; over the year, sales grew 41.33% while profit grew only 16.35%. That gap is my first warning. In lending, when revenue races ahead of earnings, it often means the extra business is being bought with more leverage or lower underwriting standards. Debt/equity is 0.96, almost one-to-one, and ROE is only 10.53%. A lender earning 10.5% on equity while carrying that leverage is not a wonderful franchise. ROCE at 14.40% is decent, and the Piotroski score of 7 suggests no immediate red flags, but the absence of a dividend tells me shareholders have to rely entirely on growth to get paid. The PEG ratio of 0.28 looks attractive, but it only helps if the profit growth is durable. I don't see a moat in these figures. Financing is a commodity; the moat is low-cost capital and disciplined lending, and neither can be confirmed here. Promoter holding at 41.20% is acceptable but not commanding. I would not classify this as a high-quality business. It is an inexpensive, fast-growing small-cap financial whose price may already reflect scepticism. I would only touch it at a larger discount to book, with a clear plan to monitor asset quality and cash conversion. Cheap is not the same as safe.

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