Hybrid Financial (HYBRIDFIN)
CyclicalScore breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹17.47 |
| Market Cap | ₹51.43 Cr |
| P/E Ratio | 20.08 |
| ROCE | 11.17% |
| ROE | 31.1% |
| Dividend Yield | 0% |
| Profit Growth | 474.16% |
| Debt/Equity | 0.02 |
| Sales Growth | 260.81% |
| Promoter Holding | 64.02% |
| 52-Week Range | ₹13.06 — ₹33.62 |
| Sector | Capital Markets |
| Book Value | ₹1.81 |
Strengths
- Almost no leverage: D/E of 0.02
- Promoter holding 64.02% aligns interests
- Reported ROE of 31.10% is high
- Profitable with latest quarter net profit ₹1 Cr on ₹2 Cr sales
Concerns
- Sales growth of 0.56% and profit decline of -1.80% show stagnation
- P/B of 11.58 and PEG of 29.34 imply expensive valuation with no growth
- Piotroski F-Score of 4/9 flags weak fundamentals
- No dividend yield and cyclical stockbroking earnings offer poor downside support
AI Analysis
When I look at Hybrid Financial, I start with the balance sheet. I am pleased to see debt/equity of only 0.02—almost no leverage. Promoters own 64.02%, so owners' interests are aligned. Reported ROE is 31.10%, which would catch any value investor's eye. But I have learned that a high return is worthless if it cannot be maintained and reinvested. Sales grew only 0.56%, and profit actually fell 1.80%. The latest quarter shows ₹2 crore of sales and ₹1 crore of net profit—that 50% net margin is extraordinary for a stockbroker, and extraordinary margins in a commodity-like business rarely last. There is no moat here. Stockbroking is cyclical; earnings will swing with trading volumes and market sentiment. Valuation is the biggest problem. At ₹20.96, I am paying 16.43 times earnings and 11.58 times book value. Paying ₹11.58 for every ₹1 of book is a very high price for a business with zero growth. The PEG ratio of 29.34 makes the same point: the market appears to be pricing in a growth miracle that the numbers do not show. The Piotroski F-Score of only 4/9 also signals weak financial health. And with a 0.00% dividend yield, I am not being paid to wait. This is a small, slow/no-growth cyclical business at an expensive price. As Graham would say, price is what you pay, value is what you get. Here, I see little margin of safety.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer