Saint-Gob. Sekur (515043)

FairStock Score: 37/100 — MIXED

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

Key Financials

Strengths

• High return on capital: ROE 21.75% and ROCE 20.03% indicate efficient, profitable operations and a possible competitive moat.
• Latest quarter net margin is strong: ₹11 Cr profit on ₹62 Cr sales (~17.7%), showing pricing power.
• Piotroski F-Score 7/9 signals healthy fundamentals across profitability, leverage and efficiency.
• Reasonable growth and income: sales +16.13%, profit +11.10%, and dividend yield of 2.02%.

Concerns

• Valuation leaves little margin of safety: P/E 21.17 and P/B 6.03, with book value only ₹22.24.
• Growth-quality mismatch: sales grew 16.13% but profit only 11.10%, indicating margin compression.
• PEG of 1.55 implies the price is high relative to the growth rate.
• Trading at the 52-week high of ₹134.10, vulnerable to any earnings disappointment.

AI Analysis

At ₹134.10, Saint-Gob Sekur is not obviously cheap. A P/E of 21.17 and P/B of 6.03 tell me the market already respects this business. To some extent, the numbers justify the respect. A return on equity of 21.75% and ROCE of 20.03% show efficient use of capital. The latest quarter, with ₹62 Cr sales and ₹11 Cr net profit, translates to a net margin of roughly 17.7% — an impressive figure for an auto-component company. The Piotroski score of 7/9 also points to sound financial health, and a 2.02% dividend gives me something while I wait. But as a value investor, I need margin of safety. Profit grew only 11.10% while sales grew 16.13%; that divergence tells me margins are under pressure. The PEG ratio of 1.55 suggests I am paying a full price relative to modest growth. Book value is only ₹22.24, so at ₹134.10 I am paying six times what the balance sheet has accumulated. The stock is sitting at the top of its 52-week range, which leaves little room for error. I would rather own a wonderful business at a fair price than a struggling one at a cheap price, but here I am being asked to pay a rich price for a good, but not spectacular, grower. Sales growth of 16% is encouraging, but profit growth of 11% is the figure that ultimately matters for a shareholder. Until the price falls to a level where the growth is reflected more honestly, or profit growth accelerates to close the PEG gap, I would keep this on my watchlist rather than in my portfolio. It is a solid company; the question is not whether Saint-Gob Sekur is good, but whether the price gives me the safety that Graham demanded. Currently, the score of 37/100 reminds me that the bargain is mixed.

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