Master Trust (MASTERTR)

FairStock Score: 47/100 — MIXED

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

Key Financials

Strengths

• Low P/E of 9.48 and P/B of 1.73, offering a discount to the broader market
• Healthy balance sheet with debt/equity of just 0.22 and book value ₹43.51
• High promoter holding of 71.93% aligns management with shareholders
• Latest quarter net profit of ₹32 Cr on sales of ₹137 Cr shows strong operating margins
• ROCE of 30.09% indicates efficient use of capital employed

Concerns

• Extremely low ROE of 1.56%, signalling weak returns for shareholders
• Declining sales (-7.55%) and profit (-10.33%) reflect business contraction
• Piotroski F-score of 3/9 suggests poor financial health and possible red flags
• No dividend and price near 52-week low of ₹55.60, down from ₹168, indicating falling market confidence

AI Analysis

I look for a business I can understand and a price that gives margin of safety. Master Trust is a stockbroking firm, a business that can be profitable but is inherently cyclical and dependent on market volumes. The numbers here paint a mixed picture. On one hand, the P/E of 9.48 and P/B of 1.73 suggest the market is not paying a fancy price. Book value is ₹43.51 per share, and debt-to-equity is just 0.22, so the balance sheet is not stretched. Promoters hold 71.93%, aligning interests with minority shareholders. The latest quarter shows sales of ₹137 Cr and net profit of ₹32 Cr, a healthy margin if sustainable. But scratch the surface and there are worrying signs. Return on equity is a measly 1.56% — that tells me they are not generating good profits on the capital shareholders have put in. ROCE is 30.09%, yet that gap with ROE is puzzling given low debt; likely non-operating distortions. Sales and profits are both shrinking: -7.55% and -10.33% respectively. The Piotroski F-score of 3/9 signals weak financial health and potential red flags. No dividend means we cannot get paid while we wait. The stock has fallen from ₹168 to ₹75 — value may be appearing, but value traps are common in declining brokerages. I would not classify this as a stalwart. It's a cyclical business at an uncertain point in the cycle. I need to see stabilising earnings and an improvement in ROE before I put my money to work. For now, I'd rather watch and wait.

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