Ascom Leasing & (ASCOM)

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

Key Financials

Strengths

• Promoter holding of 74.85% aligns owner interests with minority shareholders
• Piotroski F-Score of 7/9 indicates reasonably sound financial health
• Latest quarter net profit of ₹3 Cr on sales of ₹6 Cr implies strong profitability
• ROCE of 14.37% shows decent capital efficiency

Concerns

• P/E of 47.27 with only 6.09% sales growth and 2.68% profit growth makes valuation extremely rich
• PEG ratio of 10.78 suggests severe overvaluation relative to growth
• No dividend means shareholders get no cash return while awaiting uncertain appreciation
• Missing book value, ROE, and debt/equity data makes NBFC risk assessment difficult

AI Analysis

At first glance, Ascom Leasing looks like the kind of business I would usually pass on. It earned ₹3 crore on ₹6 crore of quarterly sales, which suggests a healthy margin, but the annual growth story is pedestrian. Sales grew only 6.09% and profit grew just 2.68%. Yet the market is asking me to pay 47 times trailing earnings. That price implies exceptional future growth, but the PEG ratio of 10.78 tells me the stock has run far ahead of fundamentals. I do not need book value or ROE to know that paying 47 times earnings for single-digit growth is a dangerous game. Graham taught me the importance of margin of safety; at this price, there is none. The 52-week range of ₹86.05 to ₹285.00 shows a stock that has flown, but price is what you pay, value is what you get. What do I like? The promoter holding is 74.85%, so owners are aligned with minority shareholders. The Piotroski score of 7/9 suggests reasonable financial health for a small NBFC, and ROCE of 14.37% is respectable, if not outstanding. But an NBFC must be judged on asset quality and capital adequacy. Without book value, ROE, or debt-to-equity data, I cannot assess the real risk. The lack of dividend is not disqualifying, but with tiny profit growth and no cash returned to shareholders, the investor depends entirely on price appreciation. That is speculation, not investing. I would wait for a far lower price, or much stronger growth, before deploying capital. For now, this is a company to study, not to buy.

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