Usha Financial (USHAFIN)

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

Key Financials

Strengths

• Profit growth of 44.84% far exceeds sales growth of 15.82%, indicating strong margin expansion or operating leverage.
• P/E of 6.16 with PEG of 0.20 suggests the stock is deeply undervalued relative to its earnings growth.
• Promoter holding of 74.97% aligns owner interests with minority shareholders.
• Piotroski F-Score of 7/9 points to good financial health across profitability, leverage, and efficiency metrics.
• Latest quarter net profit of ₹7 crore on sales of ₹19 crore shows a robust reported net margin.

Concerns

• Book value, ROE, and debt/equity are missing, making it impossible to assess leverage and true return on equity for an NBFC.
• Zero dividend yield means investor returns depend entirely on growth and re-rating, with no current income support.
• Sales growth of 15.82% is moderate; the much higher profit growth may be one-off or unsustainably driven by provisioning changes.
• Small market cap of ₹124 Cr adds liquidity and regulatory vulnerability for a lending business.

AI Analysis

Usha Financial strikes me as an interesting small-cap NBFC, but value investing demands we separate price from substance. The market cap is ₹124 crore, and at ₹34.65 the trailing P/E is just 6.16. Against a 44.84% profit growth figure, that gives a PEG near 0.20, which would make even Graham pause and check the quality behind the number. Sales growth is much slower at 15.82%, so the earnings jump appears to come from margins, cost control, or perhaps leverage. I cannot confirm which without book value, ROE, and debt/equity data. That absence is a red flag in my discipline: for a financial company, I never like investing in a black box. What I can see is encouraging: promoter holding is 74.97%, so owners have real skin in the game. The Piotroski F-Score of 7 out of 9 points to generally sound fundamentals, not a distressed operation. Latest quarter sales of ₹19 crore with net profit of ₹7 crore shows a high reported net margin, but that makes me want to know sustainability and asset quality all the more. There is no dividend yield, so the only way I earn is through growth and eventual re-rating. That is fine if the growth is real and conservatively financed; dangerous if it is built on leverage. I would call this a potential fast grower trading at a price that already seems cheap, but cheapness is not always value. I need to know loan book composition, NPAs, capital adequacy, and actual book value before I commit real capital. The score is insufficient data for a reason. If the balance sheet is as good as the profit line, small investors may have found a gem. If not, the value trap could be hiding in plain sight.

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