CSL Finance (CSLFINANCE)

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

Key Financials

Strengths

• P/E of 7.00 and P/B of 1.07 versus book value ₹219.96 and ROE 16.94% offers a clear margin of safety.
• Profit growth of 24.75% and sales growth of 20.17% with a PEG of 0.31 indicate growth at a very reasonable price.
• Piotroski F-Score of 7/9 reflects sound financial health and improving fundamentals.
• Promoter holding of 47.56% aligns management interests with minority shareholders.
• Latest quarter net profit of ₹21 Cr on sales of ₹64 Cr demonstrates strong profitability.

Concerns

• NBFC lending has no structural moat; credit discipline and asset quality are key risks.
• Debt/Equity of 1.37 increases vulnerability to rising interest rates or a credit downturn.
• Current price is close to the 52-week low of ₹210.15, suggesting market skepticism.
• Dividend yield of only 1.14% means returns depend on execution rather than income support.

AI Analysis

At ₹235, CSL Finance offers the sort of arithmetic Graham taught me to love. A P/E of just 7.00, price-to-book of 1.07, and book value of ₹219.96 means I am paying barely more than book for a business generating an ROE of 16.94%. Profit growth of 24.75% and sales growth of 20.17% are not reflected in the price. With a PEG of 0.31, the market is almost ignoring the growth. Promoter holding of 47.56% gives me comfort that my interests are aligned with people who think like owners. A Piotroski F-score of 7/9 suggests the financial statements are clean and improving. The latest quarter, with sales of ₹64 Cr and net profit of ₹21 Cr, shows strong earning power. But I must be honest with myself: this is not a business with a wide moat. NBFCs lend money, and in India lending is a commodity business. The moat, if any, comes from underwriting discipline, distribution, and cost of funds. The debt-to-equity ratio of 1.37 is manageable, not heroic, and deserves watching. The dividend yield of 1.14% is modest, so the return must come from compounding book value. In Buffett's language, it is a decent business purchased at a very attractive price. The 52-week range of ₹210-₹325 tells me the market has doubts; I see the low price as an opportunity only if the business keeps executing. If ROE stays near 17% and profit growth continues, the stock could re-rate. If asset quality worsens, the cheap multiple is likely a trap. Therefore, I would buy the business with a margin of safety, but keep my eyes wide open.

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