Clear Secured (CSSL)

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

Key Financials

Strengths

• High promoter holding of 73.03% aligns management with minority shareholders
• ROCE of 20.45% suggests decent efficiency in using capital
• Latest quarter shows profitability: ₹17 Cr net profit on ₹315 Cr sales

Concerns

• Zero sales growth and zero profit growth (0.00%)
• Piotroski F-Score of 3/9 indicates weak financial health
• No dividend yield, giving shareholders no income while waiting
• P/E of 21.25 is rich for a business with no growth

AI Analysis

At ₹109.10, Clear Secured carries a market cap of ₹302 Cr and a P/E of 21.25. For a business with zero sales and profit growth, that multiple demands immediate perfection. Graham would ask: what am I getting for my rupee? The latest quarter shows sales of ₹315 Cr and net profit of ₹17 Cr – a margin near 5.4%, respectable but hardly exceptional. ROCE is 20.45%, indicating capital is being used reasonably well, yet the Piotroski F-Score of 3/9 tells me the financial condition is fragile. Cash flow quality, asset efficiency, and leverage are all suspect. I cannot ignore that. Promoter holding at 73.03% is a genuine plus; aligned owners are important in India. But no dividend, zero growth, and no clarity on book value or debt leave too many blanks on my worksheet. The 52-week range of ₹89.50-₹132.00 suggests a drifting, low-visibility stock rather than a compounder. A P/E of 21.25 with stagnant profits is not a margin of safety; it is a hope that tomorrow will be better than today, and I don't buy hope. If the trailing numbers are accurate, this is a slow grower at best, and a value trap at worst. I would need substantial evidence of a catalyst – new contracts, margin expansion, or a meaningful turnaround – before considering it. The score of insufficient data is appropriate: what I don't know outweighs what I do. Patience is better than a forced decision. In the words of Buffett, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' Clear Secured is, on these numbers, a fair company at a demanding price.

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