NBI Indl. Fin. (NBIFIN)

FairStock Score: 27/100 — RISKY

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

Key Financials

Strengths

• Promoter holding is high at 74.17%, aligning management with minority shareholders.
• Piotroski F-Score of 7/9 indicates recent improvement in financial fundamentals.
• Price-to-book of 0.19 against book value of ₹10,887.51 offers a deep discount if the stated assets are credible.
• Latest quarter is profitable with ₹6 Cr net profit on ₹10 Cr revenue, showing some earnings traction.

Concerns

• ROCE of just 0.35% and implied ROE near negligible suggest the large book value is earning almost nothing.
• P/E of 34.74 with absolute profits of only ₹16-24 Cr scale makes the stock expensive despite low P/B.
• Sales and profit growth of 1,435% and 1,000% are off a tiny base and likely unsustainable; PEG 0.03 is misleading.
• FairStock Score of 27/100 flags this as risky, and dividend yield of 0.03% provides negligible downside support.

AI Analysis

The stock catches my eye immediately: price ₹2,087.10 against a book value of ₹10,887.51, a P/B of just 0.19. Graham would call that a margin of safety on paper. But I have learned that a low price-to-book is only meaningful if the book value is real and capable of earning a return. Here, ROCE is merely 0.35%, and the implied return on that enormous book value is tiny. The P/E of 34.74 tells me the market is paying up for a small absolute profit—latest quarter net profit is just ₹6 Cr on sales of ₹10 Cr. The reported sales growth of 1,435% and profit growth of 1,000% look spectacular, but they are coming off a microscopic base; a PEG of 0.03 is statistically meaningless. Piotroski F-Score of 7/9 suggests some recent improvement in financial health, and promoter holding of 74.17% does align owners with shareholders. But the dividend yield of 0.03% offers no income comfort, and the FairStock Score of 27/100 reminds me this is a risky name. The 52-week range of ₹1,539 to ₹2,991 also tells me this is no steady compounder. As a value investor, I ask: can this balance sheet generate high returns on equity? Unless the company can deploy its assets to earn meaningfully higher profits, a P/B discount may simply reflect trapped or poor-quality capital. This is a potential asset play, not a wonderful business. I would wait for proof of sustainable earning power before acting.

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