Capital India (CIFL)
TurnaroundFairStock Score: 26/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹21.17 |
| Market Cap | ₹827.87 Cr |
| P/E Ratio | 21.17 |
| ROCE | 6.34% |
| ROE | 4.76% |
| Dividend Yield | 0.09% |
| Profit Growth | 999% |
| Debt/Equity | 1.39 |
| Sales Growth | 51.78% |
| Promoter Holding | 72.59% |
| 52-Week Range | ₹18.9 — ₹39.69 |
| Sector | Finance |
| Book Value | ₹17.21 |
Strengths
- Promoter holding is high at 72.59%, aligning interests with minority shareholders.
- Sales still grew 8.90%, showing some business momentum.
- Debt/equity of 1.01 is moderate for an NBFC, not excessively leveraged.
- Price-to-book at 1.80 is not extreme if earnings and ROE can recover.
Concerns
- Latest quarter net loss of ₹5 Cr and profit growth of -5940% show severe earnings deterioration.
- P/E is effectively zero because earnings are absent; valuation cannot be justified on profit.
- Low ROE of 6.26% and ROCE of 6.34% indicate weak capital efficiency.
- Piotroski F-score of 4/9 and FairStock Score of 0/100 flag poor financial health.
AI Analysis
At ₹28.15, Capital India has a market cap of ₹1,197 Cr and a book value of ₹15.65. That means I am paying 1.8 times book for a business earning only 6.26% return on equity. Graham would ask: is the asset quality real, and can earnings justify the premium? The latest quarter shows a net loss of ₹5 Cr, and profit growth is -5940%. There is no current earnings power. With no usable P/E, I cannot apply my usual margin of safety. This is an NBFC, so leverage and asset quality are everything. Debt/equity of 1.01 is not alarming, but it still means the equity cushion must absorb any bad loans. Promoter holding of 72.59% is reassuring, but high ownership does not replace good underwriting. Sales grew 8.9%, yet growth without profit is value destruction. The Piotroski F-score of 4/9 signals weak financial health, and the FairStock Score of 0/100 calls it risky. A dividend yield of 0.07% is almost nothing. I do not see a durable moat here. An NBFC with weak profitability, falling earnings, and uncertain asset quality cannot be valued with confidence. Book value provides a floor only if the assets are truly worth book; in distress, that floor often evaporates. I would wait for evidence that losses are reversing, return on equity is moving comfortably above 12%, and the company can grow without excessive leverage. Until then, this belongs in the too-hard pile. I would rather miss an opportunity than lose capital.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer