Crest Ventures (CREST)

FairStock Score: 6/100 — RISKY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Let me look at Crest Ventures the way I look at any business: what does it earn on capital, and can I buy it sensibly? At ₹361.50, the stock is slightly below book value of ₹374.59. That looks interesting, but Graham warned that a discount to book is only meaningful if the assets are worth the stated book. For an NBFC, book value is really the collections on loans and investments. I don't have the NPA data, so I must be guarded. The financial health is weak: ROE is just 3.70% and ROCE is 9.68%. A business earning 3.7% on equity is not a wealth compounder. Sales have fallen 19.83% and profits 23.28% — that is a shrinking enterprise, not a franchise. A Piotroski F-Score of 3 out of 9 reinforces the picture of fundamental stress. On the positive side, debt-to-equity is only 0.16, so it is not drowning in leverage. Promoters own 69.75%, so their interests are aligned. But the market cap of ₹985 Cr demands earnings of about ₹47.7 Cr to justify a 20.65 P/E; at current annualised profit around ₹44 Cr, that multiple offers no bargain once you adjust for the decline. Dividend yield of 0.29% means the shareholder receives nothing while waiting. I'd call it a possible asset play, not a quality business. The discount to book gives some cushion, but with deteriorating operations and weak returns, I need a much larger margin of safety. Price-to-book below one is not enough; I want evidence that book value can earn reasonable returns. Without that, this is in the 'too hard' pile.

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