Baid Finserv (BAIDFIN)

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

Key Financials

Strengths

• Trading at a slight discount to book value (P/B 0.98) with a P/E of 9.82, providing a margin of safety
• Piotroski F-Score of 7/9 indicates solid financial health across profitability, leverage, and efficiency metrics
• Promoter holding of 45.71% aligns management interests with minority shareholders
• Sales growth of 15.42% shows underlying business expansion
• Positive ROE of 9.94% and ROCE of 11.25% demonstrate profitable capital deployment

Concerns

• Profit growth of just 0.42% despite 15.42% sales growth signals margin compression or rising costs
• Debt/Equity ratio not disclosed; for an NBFC, leverage is a critical risk factor and this gap limits thorough analysis
• Return on equity near 10% is mediocre; there is no wide moat visible from these numbers
• Small market cap of ₹167 Cr exposes investors to liquidity and volatility risks

AI Analysis

When I look at Baid Finserv, the first thing that stands out is the valuation: the stock trades at ₹11.02 against a book value of ₹11.21, essentially at par, and at a P/E of 9.82. That is not expensive for a profitable non-banking financial company. But price alone is not enough — I need earning power, and here I see a puzzle. Sales grew 15.42%, yet net profit rose only 0.42%. That tells me the company is expanding its top line but not converting it to the bottom line. In the latest quarter, sales of ₹25 Cr produced net profit of ₹5 Cr, a 20% margin, but the full-year picture suggests pressure. Return on equity is 9.94% and ROCE 11.25% — adequate, but not a franchise that makes me want to pay up. The Piotroski score of 7/9 is reassuring, and promoter holding at 45.71% means their interests are aligned with mine. The dividend yield is modest at 0.90%, so I am not buying this for income. The PEG of 0.84 hints at undervaluation if growth picks up, but with profit growth stuck at 0.42%, I cannot call it a fast grower. I would want to see margins stabilise and earnings start matching the revenue trajectory. As Graham said, the market is a voting machine in the short run; in the long run, it is a weighing machine. Right now, this stock seems fairly weighed — not a bargain that's screaming, but not a trap either. I'd keep it on the watchlist, not in the wallet.

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