Sanrhea Tech. (514280)

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

Key Financials

Strengths

• High profitability with ROE of 21.03% and ROCE of 22.79%
• Strong growth: sales up 18.23%, profits up 63.16%, with PEG of only 0.39
• Reasonable P/E of 15.79 for a company growing earnings quickly
• Piotroski F-Score of 7/9 indicates solid fundamentals
• Latest quarter sales of ₹23 Cr and net profit of ₹2 Cr show continuing momentum

Concerns

• Price-to-book of 3.92 against book value of ₹45.33 offers little margin of safety
• Industry 'Other Textile Products' is competitive with an unclear durable moat
• Profit growth of 63.16% far exceeds sales growth of 18.23%, raising sustainability questions
• Promoter holding is not disclosed; dividend yield is only 1.09%

AI Analysis

At ₹177.60, Sanrhea Tech is a microcap textile player with a market cap of just ₹90 Cr. The trailing P/E of 15.79 is not expensive for a business growing sales at 18.23% and profits at 63.16%. A PEG of 0.39 suggests the market is barely pricing in that growth. I also admire the profitability: ROE of 21.03% and ROCE of 22.79% are well above what most small textile companies earn. The Piotroski F-Score of 7/9 adds to the picture of a financially sound operation. The latest quarter shows sales of ₹23 Cr and net profit of ₹2 Cr, so the momentum appears real, not just a historical artefact. But Graham would remind me that a good business and a good investment are not the same thing. Book value is ₹45.33, so I am being asked to pay 3.92 times book for a small company in a competitive, low-differentiation industry called 'Other Textile Products'. That gives me little margin of safety if growth slows or margins revert. The dividend yield is only 1.09%, so the return depends heavily on continued earnings growth. Also, promoter holding is not available in the data I have. In a ₹90 Cr company, I need to know that promoters are meaningfully invested and aligned with minority shareholders. I would call this a Fast Grower, not a stalwart. The numbers are attractive, but I don't yet understand the durable moat behind the growth. I need to know why profit growth is so much higher than sales growth, whether the order book supports the trend, and whether the company can keep earning over 20% on equity. If it can, the price is reasonable. If not, the high price-to-book could punish me.

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