Sarda Proteins (519242)

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

Key Financials

Strengths

• Positive ROCE of 0.84% suggests some existing capital still generates a marginal operating return.
• Book value per share is positive at ₹13.74, so the company is not insolvent on a book basis.
• Listed on NSE/BSE provides price discovery and an exit window, albeit volatile.
• Tiny market cap of ₹12 Cr makes a future restructuring or fresh promoter entry theoretically feasible.

Concerns

• Sales collapsed by 98.96%, and the latest quarter shows ₹0 Cr sales — the core business has effectively stopped.
• ROE is deeply negative at -13.26%, and profit growth is -220%, indicating shareholder value destruction.
• Price of ₹93.24 is 6.79 times book value of ₹13.74, leaving no margin of safety.
• Piotroski F-Score of 3/9 and zero dividend yield show poor financial health and no income support.

AI Analysis

Looking at Sarda Proteins, I see no earnings power, no moat, and no margin of safety. The price is ₹93.24, while book value is only ₹13.74 — I am being asked to pay 6.79 times book for a company that earned a negative 13.26% on equity. The P/E is shown as 0.00 because earnings have essentially disappeared; sales growth is down 98.96%, and the latest quarter shows sales of ₹0 Cr and net profit of ₹0 Cr. This is not the normal volatility of an edible-oil business; this is an operating shell. The only encouraging tick I can find is a return on capital employed of 0.84%, which tells me a little capital is still working, but certainly not enough to justify this valuation. The Piotroski F-Score of 3/9 reinforces my caution: financial health is weak, and profit growth is deeply negative at -220%. A dividend yield of zero means I am not being paid to wait. In Graham's language, price is what you pay, value is what you get. Here the value is unclear, and the price is far above tangible book. Unless management can rebuild revenue from zero and demonstrate a credible path to profitability, this is a speculation, not an investment. I would put it in the 'too hard' pile and not let the 52-week range of ₹59.95 to ₹144.30 tempt me. A market cap of ₹12 Cr can attract speculative interest, but that is not the same as intrinsic value.

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