Singer India (505729)

FairStock Score: 35/100 — MIXED

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

Key Financials

Strengths

• Sales growth of 52.54% shows strong top-line momentum
• Profit growth of 300.66% reflects significant earnings expansion
• Piotroski F-score of 7/9 indicates improving financial health
• PEG ratio of 0.23 suggests reasonable valuation for near-term growth

Concerns

• P/E of 40.56 and P/B of 3.23 are rich for only 7.30% ROE and 6.89% ROCE
• Zero dividend yield provides no income support
• Net profit margin is thin: ₹5 Cr profit on ₹161 Cr sales (~3.1%)
• Promoter holding is not disclosed, creating governance uncertainty

AI Analysis

At ₹81.74, Singer India commands a market cap of ₹504 Cr against book value of ₹25.31, so I'm paying 3.23 times what the balance sheet says. That's not cheap for a business earning only 7.30% on equity and 6.89% on capital. A truly wonderful business would earn far more. The household appliances industry is fiercely competitive, with little in the way of a durable moat. Singer has brand recognition, but the numbers don't shout pricing power. Sales jumped 52.54% and profits rose 300.66%, but this comes on a small base: latest quarter net profit is just ₹5 Cr on ₹161 Cr sales, a thin margin. The 40.56 P/E prices in continued extraordinary growth. Yes, the PEG ratio looks low at 0.23, but that assumes 300% profit growth is repeatable, which is unlikely. Benjamin Graham would urge caution. On the positive side, the Piotroski F-score of 7/9 suggests improving financial fundamentals, and the sales growth is real. There's no dividend, so my return depends entirely on capital gains. With a 52-week range of ₹55.21 to ₹95.70, this is a volatile, speculative small-cap. I'd call it a fast grower with execution risk. I need to see sustained high ROE and consistent profit margins before I'd pay this price.

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