Utkarsh Small F. (UTKARSHBNK)

FairStock Score: 16/100 — RISKY

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

Key Financials

Strengths

• Trades at ₹14.05 against book value of ₹17.69, a P/B of 0.79, offering an asset-led discount if book value is credible.
• Promoter holding of 42.67% keeps management aligned with public shareholders.
• Positive ROCE of 7.17% indicates some capital productivity at the operating level before the large net loss.
• Quarterly sales of ₹821 crore show a revenue base that could support a turnaround if execution improves.

Concerns

• Latest quarter posted a net loss of ₹375 crore on sales of ₹821 crore; P/E is meaningless and profit growth is -123.16%.
• ROE of -30.72% reflects severe shareholder value destruction and likely falling book value.
• Sales growth is -11.93% and dividend yield is 0.00%, so the business is shrinking with no income reward for shareholders.
• Piotroski F-Score of 3/9 and FairStock Score of 0/100 point to very weak financial health.

AI Analysis

At ₹14.05, with book value of ₹17.69, this stock looks like a Graham-style asset play. But I have learned that a discount to book value is just an invitation to examine the quality of that book. Here, the quality is disturbing. The latest quarter delivered ₹821 crore of sales and a net loss of ₹375 crore. That loss, measured against market capitalisation of ₹2,461 crore, is enormous. Return on equity is -30.72%: the bank is destroying shareholder capital at an alarming rate. Sales are down 11.93% and profit growth is -123.16%, so this is not a temporary slip on a sound growth track; it is a shrinking, loss-making business. The Piotroski F-Score of 3/9 reinforces my caution. A small finance bank depends on trust, capital, and sound lending; with such weak profitability and erosion of book value, the low P/B of 0.79 may simply be a value trap, not a bargain. Promoter holding of 42.67% does show alignment, and ROCE of 7.17% suggests some operating productivity, but that cannot compensate for negative net earnings and a zero dividend. Benjamin Graham valued a margin of safety. Today this stock has a margin of safety in assets, perhaps, but not in earnings power. If losses continue, book value will keep falling and the apparent discount will vanish. I would need evidence of a clear turnaround: stable or growing revenues, shrinking losses, improving ROE, and a rising F-Score. Until then, this is a statistical asset play, not a business I want to own. I will put it on the watch list, not in the portfolio.

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