Dam Capital Advi (DAMCAPITAL)
CyclicalFairStock Score: 29/100 — RISKY
Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹145.32 |
| Market Cap | ₹1,027.21 Cr |
| P/E Ratio | 14.15 |
| ROCE | 64.78% |
| ROE | 182.05% |
| Dividend Yield | 0.69% |
| Profit Growth | -33.3% |
| Debt/Equity | 0.25 |
| Sales Growth | -3.2% |
| Promoter Holding | 40% |
| 52-Week Range | ₹119.22 — ₹286 |
| Sector | Capital Markets |
| Book Value | ₹53.11 |
Strengths
- Negligible debt with Debt/Equity of 0.01
- Very high reported ROE of 182.05% and ROCE of 64.78%
- Despite the decline, latest quarter is profitable with ₹20 Cr net profit on ₹70 Cr sales
- Promoter holding of 40% provides some skin in the game
- P/E of 13.16 is not optically demanding if earnings stabilize
Concerns
- Sales down 32.75% and profit down 61.15% year-on-year
- Piotroski F-Score of 3/9 signals weak financial health
- P/B of 3.66 offers no margin of safety against book value of ₹43.85
- FairStock Score of 29/100 and low dividend yield of 0.67% add to the risk picture
AI Analysis
Dam Capital's latest numbers remind me of a business tied to the pulse of capital markets. As an investor, I first ask: what is the earnings power? The trailing P/E of 13.16 looks cheap, but profits have fallen 61.15% year-on-year and sales dropped 32.75%. To pay a single-digit multiple on last year's earnings would be a fool's errand, for this is a cyclical business at a low point. The latest quarter showed sales of ₹70 Cr and net profit of ₹20 Cr, so some stability may exist, but one quarter proves nothing. The balance sheet is decent: D/E of 0.01 means negligible debt. ROE of 182.05% and ROCE of 64.78% are spectacular on the surface, but I use caution — high returns in stockbroking often come from a thin capital base and are not durable. Book value per share is ₹43.85, so at ₹160.70 the P/B is 3.66 — not a Graham bargain. With promoter holding at 40%, alignment is moderate. The Piotroski F-score of 3 out of 9 signals fundamental weakness in profitability, leverage, liquidity and efficiency. This is a crucial red flag. Also, dividend yield of 0.67% is thin; the business reinvests but does not reward shareholders generously. Mr. Market has cut the price from ₹286 to ₹160.70, but I am not yet ready to catch this knife. The moat in stockbroking is narrow; competition is intense. I might revisit if capital markets improve and growth turns positive, but at present, this is a cyclical with unproven earnings stability. Patience and caution are warranted.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer