Cons. Finvest (CONSOFINVT)

FairStock Score: 24/100 — RISKY

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

Key Financials

Strengths

• Trades at a 31% discount to book value: P/B is 0.69 against book value of ₹321.24.
• Absolute price is reasonable and within the 52-week range, not at a speculative peak.
• Promoter holding is high at 74.89%, indicating significant skin in the game.
• P/E of 12.01 is moderate on reported earnings, offering some margin if earnings stabilise.

Concerns

• Revenue and profit are declining: sales down 6.29% and profit down 21.47%.
• Return on capital employed is only 7.72%, showing weak capital efficiency.
• Piotroski F-Score of 3/9 points to poor financial health; FairStock Score of 16/100 flags the stock as risky.
• ROE and Debt/Equity are not available, leaving leverage and true shareholder returns unclear for an NBFC.

AI Analysis

At ₹220.13, Cons. Finvest is selling at a meaningful discount to its stated book value of ₹321.24 — just 0.69 times book. Benjamin Graham taught me that buying below hard book value can offer a margin of safety, but only if the book is real and capital actually earns a decent return. Here the returns look questionable. ROCE is only 7.72%, and with sales down 6.29% and profits down 21.47%, the business is shrinking, not compounding. The latest quarter shows ₹13 Cr of sales and ₹12 Cr of net profit; that is a remarkably high margin, but a single quarter does not make a great investment. The Piotroski F-score of just 3 out of 9 is a red flag: financial health is poor, and the FairStock score of 16/100 labels the stock risky. I cannot compute ROE or debt-to-equity from the data, which is uncomfortable for a leveraged NBFC. The dividend yield of 0.48% is not compensation for holding while waiting. Promoter holding at 74.89% is high, so management has skin in the game, but minority investors still need evidence of prudent capital allocation. This is not a durable grower; it looks like an asset play. At 12 times earnings the market still gives it some credit, but falling profits and weak fundamentals mean that earnings multiple could become dearer if the slide continues. I would need to see stabilising revenues, transparent leverage numbers, and proof that book value is not impaired before acting. In Graham's language: a dollar of book selling for sixty-nine cents is interesting, but not when the dollar might shrink.

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