S & T Corporatio (514197)

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

Key Financials

Strengths

• Book value per share is positive at ₹4.31, offering a small tangible asset cushion.
• The company is generating some revenue, with latest quarter sales of ₹1 Cr.
• ROCE is positive at 0.39%, so operations are not completely capital-destructive on an operating basis.

Concerns

• P/B of 3.94 means investors pay nearly 4x book value for a business earning -2.75% ROE.
• Annualised sales of roughly ₹4 Cr imply a market cap to sales ratio of about 13.5x, with zero net profit.
• Profit growth of -150% and latest quarter net profit of -₹0 Cr show deteriorating profitability.
• Piotroski F-Score of 4/9 indicates weak overall financial health, with promoter holding unavailable.

AI Analysis

Let me start with what every intelligent investor must ask: does this business earn a good return on capital? Today, the answer is no. The company's return on equity is -2.75%, and its return on capital employed is only 0.39%. Against a book value of ₹4.31, the stock trades at ₹16.96, or 3.94 times book. That is a steep price for a business that produces no profit. The latest quarter shows sales of just ₹1 Cr and net profit of -₹0 Cr. Annualise those sales and you get roughly ₹4 Cr, against a ₹54 Cr market cap: more than thirteen times sales with zero earnings. The 3,625% sales growth sounds remarkable, but it is a classic base effect from a tiny starting number; profit growth is -150%. A Piotroski F-score of 4 out of 9 tells me the balance sheet and operations are weak. There is no dividend to compensate me while I wait. The stock has moved from ₹3.25 to ₹16.96 in its 52-week range, but price momentum is not evidence of business value. In Graham's terms, I need a margin of safety. Here I see none. There is a small asset base, and ROCE is positive, but 0.39% is below any reasonable required return, so the business is not creating value for shareholders. I do not speculate on micro-caps just because revenue has jumped from a low base. If management can convert sales into earnings, if margins and returns improve, and if the debt situation becomes clearer, I will revisit. Until then, this is a stock to watch, not to buy. Remember, price is what you pay; value is what you get. Here the price demands far more than the business delivers.

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