Nagreeka Cap. (NAGREEKCAP)

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

Key Financials

Strengths

• Promoter holding of 53.53% aligns management interests with minority shareholders.
• P/E of 1.88 and PEG of 0.01 indicate very cheap on current reported earnings.
• Strong recent profitability with ROE of 157.36% and ROCE of 29.22%.
• Latest quarter shows sales of ₹24 Cr and net profit of ₹3 Cr, supporting near-term earnings.
• Piotroski F-Score of 7/9 points to reasonable recent fundamental health.

Concerns

• Debt/Equity of 3.30 is very high, making the investment company vulnerable to market and interest-rate shocks.
• Price-to-Book of 4.42 means paying far above net asset value of ₹8.40 for an investment company.
• Sales growth of 463.74% far outstrips profit growth of 25.57%, raising questions about earnings quality.
• No dividend yield means investors get no cash return while relying only on price appreciation.

AI Analysis

Let me approach Nagreeka Cap. the way I would any investment company: first, what am I getting for my rupees? The book value stands at ₹8.40, yet the market price is ₹37.09. That is a P/B of 4.42. As Graham would say, an investment company is only worth what its assets can realize. Paying over four times book for assets is no margin of safety; it is hopeful speculation in a different wrapper. The P/E of 1.88 and PEG of 0.01 are attractive on paper, but they arise from a thin equity base and a single burst of revenue, not from durable earning power. Sales growth of 463.74% sounds wonderful, yet profit growth is just 25.57%. Where did all that revenue go? When growth in sales does not show up in profit, I become suspicious of the quality of that growth. The balance sheet is the bigger red flag. Debt-to-equity of 3.30 means the company is operating with borrowed capital. For an investment company, leverage can turn a modest market dip into a loss you cannot survive. ROE of 157.36% is mathematically impressive, but it is inflated by leverage and a small book value, not by a superior business with pricing power. There is no dividend, so my total return would depend entirely on price appreciation. Promoter holding of 53.53% is encouraging—when owners have skin in the game, I listen. Piotroski score of 7 suggests recent financial health is not terrible. But in the game of value investing, a good score on a leveraged, market-dependent vehicle does not make a good investment. Nagreeka may be temporarily profitable and cheap by P/E, but it is not a simple stable compounder. I would rather miss the upside than leave my capital unprotected in a leveraged, asset-rich but book-poor cycle.

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