Saptarishi Agro (519238)

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

Key Financials

Strengths

• ROE of 33.00% reflects historically strong return on equity, though on a small book value base.
• ROCE of 16.28% suggests the core capital is generating a reasonable operational return.
• Sales growth remains positive at 2.87%, showing some ability to maintain revenue momentum.
• The stock trades below its 52-week high of ₹49, reducing some entry exuberance.

Concerns

• Latest quarter posted a net loss of ₹3 Cr on sales of ₹10 Cr, with profit growth at -495.45%.
• Valuation is stretched: P/E of 64.33, P/B of 16.42, and PEG of 22.41 offer no margin of safety.
• Piotroski F-score of 4/9 points to weak fundamental and operational health.
• No dividend is paid, and promoter holding as well as debt/equity data are not available, creating a transparency gap.

AI Analysis

Let me look at Saptarishi Agro with a simple lens. A business is worth what it earns, and right now this agro company earns very little. The market caps it at ₹116 Cr, yet the latest quarter lost ₹3 Cr on sales of just ₹10 Cr. A trailing P/E of 64 and a price-to-book of 16.42 are far too rich for a business whose profit growth is -495%. This is not a compounding machine; it is an expensive hope. The ROE of 33% looks eye-catching, but it rests on a tiny book value of ₹2.07 per share. High returns on a small equity base can vanish quickly when earnings turn negative. ROCE of 16.28% is decent, but with sales growth of only 2.87%, there is no evidence of pricing power or a durable moat. The 52-week range of ₹27 to ₹49 shows volatility, and with no dividend, shareholders are entirely dependent on price appreciation. Graham would insist on margin of safety. At this price, there is none. The Piotroski F-score of 4/9 hints at poor operational health, and a PEG ratio of 22.41 suggests the market is paying a steep price for very little expected growth. I cannot trust management or promoter data because it is missing—a red flag in itself. This looks like a potential turnaround situation, but only if operations actually turn around. I need evidence of consecutive profitable quarters, improving margins, and honest disclosure. Until then, this is a pass. I would rather wait for a price that offers a margin of safety and better financial clarity.

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