SJ Corp (504398)

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

Key Financials

Strengths

• Sales growth of 1,096.61% signals a dramatic expansion in topline, albeit from a small base.
• Profit growth of 161.90% and Piotroski F-Score of 6/9 suggest recent financial improvement.
• PEG of 0.20 implies the market is pricing in continued rapid growth, and if it materialises, the valuation could be justified.
• Latest quarter sales of ₹7 Cr show the company is generating actual business activity, not just shell-level revenues.

Concerns

• P/E of 124.40 and P/B of 3.96 are steep for ROE of 5.47% and negative ROCE of -2.67%.
• Latest quarter net profit of ₹0 Cr contradicts the headline profit growth and raises sustainability doubts.
• Current price ₹41.89 is below the stated 52-week range of ₹58.94-₹78.79, suggesting severe deterioration or illiquidity.
• No dividend, promoter holding N/A and debt/equity N/A leave key governance and leverage risks unmeasured.

AI Analysis

Let me start with what I see. This is a ₹36 crore micro-cap in the gems and jewellery trade, selling at ₹41.89 against a book value of ₹10.57. That is a P/B of 3.96, and for that premium I get a return on equity of only 5.47% and a negative return on capital employed of -2.67%. In Graham's language, that is not a satisfying trade. The P/E of 124.40 only strengthens my suspicion; the market is paying a heavy price for a very thin stream of earnings. Yes, reported sales growth of 1,096.61% and profit growth of 161.90% look spectacular, but the latest quarter tells a different story: sales of just ₹7 crore and net profit of approximately ₹0 crore. One good quarter or a small base can produce enormous percentage growth; it does not create a durable franchise. In jewellery, there is no visible moat, margins are narrow, and working capital eats cash. The Piotroski score of 6/9 is passable, but not a reason to ignore a negative ROCE. The PEG of 0.20 is only meaningful if the 161.90% profit growth is sustainable — and I have no evidence of that. There is no dividend, promoter holding is not disclosed, and debt/equity is not available. As Buffett would say, risk comes from not knowing what you are doing. Here, I do not know enough. The current price is even below the stated 52-week range, which suggests either data issues or sharp deterioration. My discipline demands a margin of safety; at ₹41.89, I see speculation, not investment. I would wait for consistent earnings, cleaner numbers and a lower price.

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