Mangal Credit (MANCREDIT)

FairStock Score: 43/100 — MIXED

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

Key Financials

Strengths

• Revenue growth is strong at 44.4%, with latest quarterly sales of ₹18 Cr and net profit of ₹4 Cr.
• Piotroski F-Score of 7/9 indicates decent financial health and operational efficiency.
• Promoter holding of 55.25% aligns management interests with minority shareholders.
• ROCE of 12.17% is respectable for a small NBFC.

Concerns

• Profit growth of 10.06% trails revenue growth sharply, suggesting limited operating leverage.
• Valuation is rich: P/E of 28.13, P/B of 2.75, and dividend yield of just 0.44%.
• ROE of 9.28% is mediocre for the price being paid; no wide moat is visible.
• Stock has fallen from a 52-week high of ₹287.27 to ₹173.17, indicating market disappointment.

AI Analysis

When I study Mangal Credit, I first ask whether it earns a good return on capital, not merely whether it grows. The numbers give a mixed answer. Sales grew 44.4%, and yet profit grew only 10.06%. That divergence tells me the company is expanding its loan book faster than it is converting that growth into bottom-line earnings. ROE is 9.28% and ROCE is 12.17% — acceptable, but hardly the kind of exceptional return that creates durable compounding. In a crowded NBFC market, I see no clear moat from these figures; the advantages of low-cost funding and disciplined underwriting are not yet visible. Encouragingly, the Piotroski F-Score of 7/9 suggests the balance sheet is in reasonable shape. Promoter holding is 55.25%, which aligns owners with minority shareholders. Debt/equity of 1.75 is high, but for an NBFC leverage is the nature of the business; the real question is asset quality, and I cannot judge that from this data alone. Now to valuation. At ₹173.17, the market cap is ₹356 Cr. The P/E of 28.13 and P/B of 2.75 are not cheap. A 0.44% dividend yield gives me little compensation while I wait. Graham would insist on a margin of safety; here the price already fell from a 52-week high of ₹287.27, yet even after that decline I am still asked to pay 28 times earnings for a business whose profit growth is 10%. The PEG of 1.03 is only comfortable if you believe future growth will be much higher than the reported profit trend. The latest quarter — sales ₹18 Cr and net profit ₹4 Cr — shows the absolute scale is still small. Would I invest today? No. This is a fast-growing tiny lender, but value requires both growth and a sensible price. I would wait for either a lower price or clear evidence that profit growth can catch up with loan growth and ROE can move meaningfully above its current level.

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