Starteck Fin. (STARTECK)

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

Key Financials

Strengths

• Promoter holding of 73.30% aligns management interests with minority shareholders
• P/E of 12.77 and PEG of 0.21 suggest inexpensive valuation relative to recent growth
• Debt/Equity of 1.08 is manageable for an NBFC
• Piotroski F-Score of 7/9 indicates sound financial health
• Profit growth of 106.06% shows sharply improving earnings

Concerns

• ROE of 9.40% and ROCE of 7.37% reflect mediocre capital efficiency
• Latest quarter net margin of ~70% (Sales ₹10 Cr, Net Profit ₹7 Cr) is unusually high and may be unsustainable
• Dividend yield of 0.09% is negligible, offering no income support
• Profit growth far exceeds sales growth, raising questions about low base or one-off gains

AI Analysis

Looking at Starteck Fin., I'm reminded that in the stock market, the ticket to ride is not just cheapness but also clarity. This is a small NBFC with a market cap of ₹264 Cr. At ₹246.97, it trades at 12.77 times earnings and 1.23 times book value. The return on equity is 9.4% — nowhere near the 15%+ I'd want from a quality compounder. The reported profit growth of 106% would turn any investor's head, but I've learned to ask why. Sales grew only 16.21%, so this leap in profits suggests cost reduction, tax adjustments, or a low base effect. The latest quarter shows sales of ₹10 Cr and net profit of ₹7 Cr — a 70% net margin, far above what a lending company should earn. That makes me suspect the number's quality. The balance sheet is manageable with debt/equity at 1.08, and the Piotroski F-Score of 7 indicates decent financial health. Promoter holding of 73.30% is reassuring. But the dividend yield is a mere 0.09%, so minority shareholders must rely entirely on capital gains. The PEG ratio of 0.21 suggests the market has priced in strong growth, yet a P/E of 12.77 isn't demanding if those profits are real. But for a no-moat, small NBFC, I need a larger margin of safety. Book value is ₹200.69, so I'm paying a premium for a mediocre ROE. This could be a fast grower, but a skeptical Buffett would not rush in. I'd want to see several more quarters of consistent profitability and evidence that the 70% margin isn't a one-off. Until then, this is a watchlist candidate, not a conviction buy.

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