Mufin Green (MUFIN)
Fast GrowerFairStock Score: 28/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹135.54 |
| Market Cap | ₹2,685.89 Cr |
| P/E Ratio | 82.65 |
| ROCE | 12.61% |
| ROE | 8.11% |
| Dividend Yield | 0% |
| Profit Growth | 240.88% |
| Debt/Equity | 2.43 |
| Sales Growth | 59.67% |
| Promoter Holding | 54.11% |
| 52-Week Range | ₹85.13 — ₹140.9 |
| Sector | Finance |
| Book Value | ₹32.66 |
Strengths
- Sales growth of 29.81% shows strong business momentum.
- Piotroski F-Score of 7/9 indicates decent financial health and accounting quality.
- Promoter holding of 54.11% aligns owner interests with minority shareholders.
- Latest quarter turned a profit: ₹56 Cr sales with ₹7 Cr net profit.
Concerns
- P/E of 94.39 and P/B of 7.80 against book value of ₹14.97 make the valuation very demanding.
- ROE of 8.11% is too low to justify paying nearly 95 times earnings or 7.8 times book.
- Profit growth of 15.68% trails sales growth, and PEG of 4.15 suggests expensive growth.
- Debt/equity of 2.72 and zero dividend yield add financial risk with no current income cushion.
AI Analysis
At ₹116.77, Mufin Green is a ₹1,990 crore NBFC that makes me pause. I don't care what a stock has done; I care what it earns on equity. The company earns only 8.11% ROE and 12.61% ROCE. For a financial institution, that's not a spectacular business. Yet the market offers ₹116.77 for a book value of ₹14.97 — that's 7.8 times book. Paying that for an 8% ROE is the kind of arithmetic that can harm capital. Growth appears: sales up 29.81%, profits up 15.68%; latest quarter sales ₹56 Cr with net profit ₹7 Cr. But profit is growing at half the speed of sales, and a PEG of 4.15 tells me the market is already paying a great deal for that growth. There is no dividend yield; shareholders wait for capital appreciation as sole reward. Debt/equity of 2.72 is not excessive for an NBFC, but it adds financial risk when returns are merely decent. The Piotroski score 7/9 suggests cleaner finances, and promoter holding 54.11% is reassuring. But high leverage, single-digit ROE, and a 94 P/E leave no margin of safety. This has the look of a fast-growing financial business, but it's in a competitive lending field without an obvious moat. I need to be convinced that ROE will expand dramatically and debt won't become a burden. Until then, this is a growth story, not a value investment. My rule: never pay for a beautiful business with the economics of an average one. Price is high; intrinsic value is not visible.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer