Sizemasters Tech (513496)

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

Key Financials

Strengths

• Sales growth of 50.62% and profit growth of 342.86% show strong momentum, though from a small base.
• ROE of 23.57% indicates efficient use of equity capital.
• Piotroski F-score of 7/9 suggests reasonable near-term financial health.
• PEG ratio of 0.34 implies the market is pricing in continued fast growth.

Concerns

• P/E of 67.69 and P/B of 15.90 against book value of ₹13.76 leave no margin of safety.
• Latest quarter profit of ₹1 crore on sales of ₹7 crore is tiny; annualized earnings power of roughly ₹4 crore cannot easily support a ₹230 crore market cap.
• ROCE of 13.24% is far below ROE of 23.57%, hinting at possible leverage or non-operating income; debt/equity is not disclosed.
• Promoter holding is N/A and dividend yield is zero, so promoter alignment and income support are unclear.

AI Analysis

At ₹218.80, Sizemasters Tech is a small-cap zinc play with a market cap of ₹230 crore. A market cap that size with quarterly sales of just ₹7 crore and net profit of ₹1 crore means this is a very small business. The trailing P/E of 67.69 and P/B of 15.90 versus book value of ₹13.76 leave no margin of safety. Price is 15.9 times book; as Graham said, price is what you pay, value is what you get. Here, the value seems thin. The company shows impressive momentum: 50.62% sales growth and a 342.86% profit explosion, with ROE at 23.57%. The Piotroski F-score of 7/9 suggests short-term financial health is decent. But I must be cautious. ROCE is only 13.24%, well below ROE, indicating that debt or non-operating items may be inflating equity returns. Debt/equity is not disclosed, and promoter holding is N/A, so I lack two critical pieces of information. A 342% profit growth number from a base of ₹1-2 crore profit is easier to achieve than a large company doing the same. The latest quarter net profit of ₹1 crore means annualized earnings power is around ₹4 crore, still too small to justify a ₹230 crore valuation in a commodity business. Zinc is not a branded consumer franchise; prices are global and outside management control. No dividend means the investor's only return comes from price appreciation and future earnings growth. The PEG ratio of 0.34 looks attractive, but PEG is only as reliable as the growth rate. I would need several years of consistent cash flows and a clear competitive advantage before paying 67 times earnings. This is a fast grower on paper, but for a commodity micro-cap, growth often reverses. I would keep it on a watchlist, not buy.

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