Capital Trust (CAPTRUST)

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

Key Financials

Strengths

• Trades at 0.54 times book value with book value at ₹24.50 per share versus price of ₹13.26
• Promoter holding is 54.13%, indicating meaningful insider stake
• Debt-to-equity of 1.34 is not extreme for an NBFC if asset quality holds
• Small market cap of ₹44 Cr can offer outsized upside if the loan book is monetized

Concerns

• ROE is deeply negative at -33.28%, and latest quarter shows a net loss of ₹2 Cr
• Revenue declined 55%, and profit growth collapsed by 2,683%
• Piotroski F-score of 3 out of 9 suggests poor financial health
• No dividend and zero earnings support, making valuation entirely dependent on asset recovery

AI Analysis

At ₹13.26, this looks like a classic Graham cigar butt. The market cap is only ₹44 Cr, while book value stands at ₹24.50 per share, so the stock trades at 0.54 times book. But a discount to book is only attractive if the book is real. Capital Trust has lost earning power: sales collapsed 55%, the latest quarter produced just ₹11 Cr of revenue and a ₹2 Cr loss, and ROE is deeply negative at -33.28%. A Piotroski F-score of 3 reinforces my suspicion that the balance sheet is not healing. For an NBFC, debt-to-equity of 1.34 is acceptable only when assets are good; with negative profit growth of 2,683%, I need hard evidence that the loan book is not impaired. The 52-week range of ₹10.98 to ₹54.05 suggests this stock has already destroyed a lot of investor wealth. Promoter holding of 54.13% does align interests, and that is a point in its favour, but good intentions do not repay debt. No dividend means shareholders are getting no cash while waiting. This is not a grower or a stalwart; it is an asset play, and a speculative one. The only sensible path is to examine the true net asset value after haircuts, watch whether losses narrow, and see if management can monetize the loan book. If the book value is inflated, this apparent margin of safety is a mirage. If it is real and recoverable, there may be value, but the operating bleed makes me cautious. I would wait for proof of profitability before committing capital.

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