Satani Bearings (505703)

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

Key Financials

Strengths

• Quarterly sales of ₹19 Cr vs market cap of ₹14 Cr implies a low price-to-sales level; even a thin margin recovery could have a large impact.
• Reported profit growth of 400% may be an early, albeit fragile, sign of a turnaround from a negligible base.
• Piotroski F-Score of 5/9 suggests a few fundamental signals exist, though it is far from a strong score.

Concerns

• ROE of -119.08% and ROCE of -126.67% indicate severe return-on-capital destruction.
• Book value of ₹0.08 per share with a P/B of 823.75 leaves no asset cushion for investors.
• Latest quarter net profit of ₹0 Cr on sales of ₹19 Cr shows operations are not yet profitable.
• Current price of ₹65.90 is below the stated 52-week low of ₹103.10, signalling either unreliable data or extreme distress.

AI Analysis

Let me begin with the most basic question: what am I actually buying? Satani Bearings has a market capitalisation of ₹14 Cr and the shares trade at ₹65.90. But the book value per share is only ₹0.08, so I am being asked to pay 823.75 times book value. That alone violates every value principle I follow. The business is not earning on that book value either: ROE is -119.08% and ROCE is -126.67%. In other words, management is shrinking the small equity base, not compounding it. The latest quarter shows sales of ₹19 Cr, yet net profit is exactly ₹0 Cr. A business with revenue but no profit has no ability to reward shareholders unless something fundamental changes. The reported profit growth of 400% is meaningless because the base is zero or negative; a 400% improvement from nothing is still close to nothing. P/E is 0.00, and there is no dividend. The 52-week range is ₹103.10 to ₹310.25, yet the current price is ₹65.90—below the lower bound of that range. This suggests either a data problem or a market that is pricing in severe distress. Either way, I do not have a reliable margin of safety. The Piotroski F-Score of 5/9 is middling, but it cannot overcome negative returns on capital and a microscopic book value. Graham said to buy with humble arithmetic: price, earnings, book value, and return on capital. Here, the arithmetic rejects the purchase. I would rather miss this opportunity than lose capital trying to catch a falling knife.

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