Mah. Scooters (MAHSCOOTER)

FairStock Score: 26/100 — RISKY

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

Key Financials

Strengths

• P/B of 0.47 with price ₹12,613 vs book value ₹27,005 offers a large asset-backed discount.
• Zero debt and a clean balance sheet with D/E of 0.00.
• Promoter holding at 51% aligns interests with minority shareholders.
• Piotroski F-Score of 8/9 suggests sound accounting quality and financial fundamentals.
• Recent headline sales growth of 72.32% and profit growth of 119.99% indicate some traction, though from a very low base.

Concerns

• Extremely low returns on equity and capital: ROE 1.16%, ROCE 0.59%.
• Latest quarter sales of ₹6 Cr and net profit of ₹4 Cr are minuscule against a ₹15,153 Cr market cap; P/E 48.79 and EV/EBITDA 46.46 are expensive on earnings.
• DCF intrinsic value of ₹9,018.60 is below the current price, and Graham Number margin of safety is only 4.04%.
• Low dividend yield of 1.21% offers little compensation while waiting for value to be unlocked.

AI Analysis

This is a peculiar specimen. On purely Graham screens, it tempts you: price ₹12,613 against book value ₹27,005, a 0.47 P/B, no debt, and promoters holding 51%. But the investor's job is not to buy cheap assets; it is to buy cheap assets that can generate wealth. Here, the equity base earns almost nothing—ROE 1.16%, ROCE 0.59%. With that, the market is right to attach a holding-company discount. The recent 72.32% sales growth and 119.99% profit growth look like base-effect noise because the latest quarter delivered only ₹6 Cr of sales and ₹4 Cr of profit. Annualizing that, the current P/E of 48.79 and EV/EBITDA of 46.46 are impossible to justify from an earnings standpoint. DCF value of ₹9,018.60 sits below today's price, and even the Graham Number of ₹13,816.87 leaves a razor-thin margin of safety of 4.04%. The balance sheet is clean—zero debt, and the Piotroski score of 8/9 suggests no deterioration in accounting quality. Dividend yield of 1.21% is not enough to make me wait while capital lies idle. So this is not a compounder or a stalwart; it's an asset play. The potential lies in the gap between market value and stated book value, but that gap only closes if the underlying investments are sold, restructured, or earnings power improves materially. Until then, a 0.47 P/B in an investment company is often a value trap, not an opportunity. I would need a significantly wider margin of safety, or visible catalytic action, before acting.

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