Wealth First Por (WEALTH)

FairStock Score: 4/100 — RISKY

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

Key Financials

Strengths

• High promoter holding of 74.04% aligns management with minority shareholders.
• Dividend yield of 2.12% indicates at least some cash return despite weak earnings.
• Reported ROCE of 37.87% shows historically strong capital efficiency, though on shrinking profits.
• Latest quarter remains profitable, albeit at a tiny ₹1 crore net profit.

Concerns

• Sales growth of -60.06% and profit growth of -89.24% signal severe business deterioration.
• Valuation is rich: P/E of 42.03 and P/B of 6.59 against book value of ₹141.44.
• Piotroski F-score of 3/9 and FairStock Score of 5/100 point to poor financial health and high risk.
• Market cap of ₹1,003 Cr relative to latest quarterly profit of ₹1 Cr implies an extreme annualized valuation.

AI Analysis

At first glance, Wealth First Por fails my two rules: don't lose money, and be greedy when others are fearful. The headlines are ugly—revenue down 60.06%, profits down 89.24%, latest quarter at ₹6 crore sales and just ₹1 crore net profit. A trailing P/E of 42.03 and price-to-book of 6.59 give me no margin of safety for a business of this size. The ROCE of 37.87% looks impressive, but with profits collapsing, that is history, not a promise of future. I do not see a durable moat in a small 'other financial services' player; scale is minimal, and the Piotroski F-score of 3/9 points to deteriorating fundamentals. FairStock's 5/100 risky score confirms my skepticism. The bright spots are limited: 74.04% promoter holding aligns interests, and a 2.12% dividend shows some cash discipline. But the dividend is cold comfort if earnings shrink 89%. Book value is ₹141.44 per share; I am asked to pay ₹932.35—nearly six and a half times book—for a company whose latest quarterly profit annualizes to roughly ₹4 crore against a ₹1,003 crore market cap. That is not investing; it is paying for a story. The 52-week range from ₹774.95 to ₹1,300.50 tells me the stock has fallen, but a falling price is not automatically a bargain. Graham would demand a margin of safety, and I do not find one here. This belongs on the 'too hard' pile until growth resumes and earnings stabilize. I would wait for a much lower price or clear evidence of a turnaround.

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