Super Sales Ind. (512527)

FairStock Score: 17/100 — RISKY

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

Key Financials

Strengths

• Trading below book value: P/B of 0.93, with book value ₹1,949.53 against market price ₹1,813.95.
• Piotroski F-Score of 7/9 suggests reasonably sound financial health and some fundamental improvement.
• Positive sales growth of 3.88% and reported profit growth of 76.77%, though off a low earnings base.
• Small market cap of ₹567 Cr offers potential for asset-backed upside if the underlying assets are genuine.

Concerns

• Extremely low ROE of 0.54% and ROCE of 1.07%, indicating weak earning power on equity and capital.
• Latest quarter is loss-making: net profit of ₹-1 Cr on sales of ₹104 Cr, raising doubt about earnings stability.
• P/E of 53.05 is expensive relative to profits; the recent profit growth appears to be from a low base.
• FairStock Score of 17/100 labels the stock risky; it has already rallied from ₹530 to ₹1,813.95 in its 52-week range.

AI Analysis

At first glance, this looks like a classic asset situation. Super Sales India trades at ₹1,813.95 while book value stands at ₹1,949.53, so I am getting equity at a small discount. But a Graham disciple learns quickly: a cheap price cannot compensate for poor earning power unless the assets can be realized. This company earns only 0.54% on equity and 1.07% on capital employed. That is far below what I expect from a decent business; even a fixed deposit would likely beat it. The latest quarter reinforces my caution: sales of ₹104 crore produced a net loss of ₹1 crore. A P/E of 53.05 is meaningless when profits are tiny and the most recent quarter is in red. Profit growth of 76.77% looks impressive but appears to be from a very low base, not evidence of a durable moat. Sales growth of only 3.88% hardly suggests a dynamic franchise. On the positive side, the Piotroski F-Score of 7 out of 9 suggests the financial structure has improved, and I note debt/equity is not provided. I would want to know why book value is so much larger than the market price: inventory, real estate, receivables, or operating losses. The stock has already moved from ₹530 to ₹1,813.95 in a year, so the bargain may have been partly discovered. With a dividend yield of 0.40%, shareholders see little cash return while waiting. All this leads me to treat Super Sales as an asset play, not a compounder. I would only invest if the underlying assets are real, liquid, and capable of generating better returns; a low P/B alone has ruined many value investors when the business itself remains a poor earner.

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