Geojit Fin. Ser. (GEOJITFSL)
CyclicalFairStock Score: 35/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 1/1
Key Financials
| Current Price | ₹80.37 |
| Market Cap | ₹2,243.3 Cr |
| P/E Ratio | 30.91 |
| ROCE | 18.84% |
| ROE | 11.44% |
| Dividend Yield | 1.87% |
| Profit Growth | -20.38% |
| Debt/Equity | 0.09 |
| Sales Growth | 16.43% |
| Promoter Holding | 38.48% |
| 52-Week Range | ₹50.86 — ₹86.55 |
| Sector | Capital Markets |
| Book Value | ₹43.03 |
Strengths
- Conservative balance sheet with debt/equity of only 0.10
- Dividend yield of 2.37% provides some return to shareholders
- ROCE of 18.84% indicates reasonable capital efficiency
- Latest quarter remains profitable with net profit of ₹14 crore
Concerns
- Profit growth down 49.67% and sales down 6.74% show clear business contraction
- Piotroski F-score of 3/9 signals weak financial health
- Valuation not cheap: P/E 17.76 and P/B 2.51 against ROE of 11.44%
- FairStock Score of 13/100 labels the stock as risky
AI Analysis
Let me look at Geojit as a business, not a ticker. A stockbroker's earnings are tied to market activity, so today’s numbers already tell me this is not a compounder. Revenue fell 6.74%, and profit collapsed nearly 50% to ₹14 crore in the latest quarter. At ₹66.64, the market capitalizes this at ₹1,763 crore, about 17.76 times trailing earnings. That is not a bargain for a business whose profits are sliding. The Piotroski F-score of 3/9 is a red flag; it suggests deteriorating fundamentals, not the financial strength Graham would demand. On the positive side, debt/equity is only 0.10, so the company is not loaded with leverage. A 2.37% dividend yield gives some reward while waiting, but dividends are not guaranteed when profits shrink. Return on equity is 11.44%, acceptable but not exceptional; book value is ₹26.50, so paying 2.51 times book means I am paying a substantial premium for a business with modest returns and declining earnings. The 52-week range of ₹50.86 to ₹85.39 shows volatility and Mr. Market’s mood swings. If I owned this, I would watch quarterly profit and F-score closely. But as a value investor, I need margin of safety. At 17.76 times earnings with a 49.67% profit decline, I do not see a clear margin. The market may be hoping for a cyclical rebound in broking volumes, but hope is not an investment thesis. FairStock scores it 13/100—risky. I would rather wait for a better price or a demonstrated turnaround. There is nothing here that excites me.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer