Aye Finance (AYE)

FairStock Score: 40/100 — MIXED

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

Key Financials

Strengths

• Profitable with latest quarter net profit of ₹35 Cr on revenue of ₹437 Cr, implying a roughly 8% margin.
• Book value of ₹87.77 gives some asset backing, and price-to-book at 1.55 is not extreme.
• ROCE of 12.70% suggests the business generates a moderate return on capital employed.
• P/E of 17.16 implies a roughly 5.8% earnings yield if current earnings are sustainable.

Concerns

• Sales and profit growth are both 0.00%, showing no evidence of compounding.
• Piotroski F-Score of 3/9 and FairStock Score of 23/100 indicate weak financial health.
• Promoter holding is 0.00% and dividend yield is 0.00%, raising governance and shareholder-return concerns.
• ROE and debt/equity are not disclosed, which is dangerous for an NBFC where leverage and return on equity are critical.

AI Analysis

Let me be honest: at first glance Aye Finance looks like the kind of lender I might study, but the more I look, the less I like. I don't need a brilliant business if the price is right, but I do need reliable numbers. Here I see a company earning ₹35 crore on sales of ₹437 crore in the latest quarter—roughly an 8% margin. The market prices the whole company at ₹2,938 crore, or 17.16 times earnings and 1.55 times book value. That is not a steal for a business with zero sales and profit growth. The reported numbers show no compounding engine. A lender that doesn't grow must be exceptionally cheap and conservatively financed; this one is neither, especially with return on equity and debt/equity not given. As Graham would say, the lack of disclosure is itself a warning. Promoter holding is nil, so there is no visible alignment with outside shareholders. The Piotroski F-Score is 3 out of 9, and the FairStock Score is 23/100—both screens would send me away. There is also no dividend, so the investor must rely entirely on multiple expansion or growth, and at 17 times earnings on flat results that is hoping rather than investing. The stock has fallen from ₹197.95 to ₹135.84, but a falling price is not a margin of safety; it can just reflect deteriorating quality. Book value of ₹87.77 gives some floor, and ROCE of 12.7% shows the business can produce a return, but a return below what I can get in quality compounders, with poor scores, is not enough. I would leave this to someone who loves turnarounds. For me, this is an avoid.

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