Sunil Industries (521232)

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

Key Financials

Strengths

• P/B of 0.65 vs book value of ₹111.18 offers a margin of safety on the balance sheet if assets are sound.
• Trailing P/E of 6.20 appears cheap, provided earnings power can be restored.
• ROE of 10.91% and ROCE of 10.59% show reasonable returns before the sharp decline.
• Current price of ₹72.52 is closer to the 52-week low of ₹59.50 than the high of ₹98.80, limiting some downside expectations.

Concerns

• Sales down 73.48% and profits down 83.06% reflect severe business contraction.
• Latest quarter sales of ₹16 Cr and net profit of ₹0 Cr show continuing earnings weakness.
• Piotroski F-Score of 3/9 signals weak financial health and possible operational stress.
• No dividend, promoter holding not disclosed, and debt/equity not available create uncertainty around governance and balance-sheet risk.

AI Analysis

Looking at Sunil Industries, the first thing that catches my eye is the balance sheet: book value of ₹111.18, price of ₹72.52, trading at 0.65 times book. In Graham's framework, that sounds like a margin of safety. But a cheap price is not enough. This is a trading and distribution business, and I struggle to find a moat there. Distribution is a low-barrier, competitive game; customers and suppliers can bypass you. Growth is not a story: sales have fallen 73.48% and profits 83.06%. The latest quarter tells the same tale—sales ₹16 Cr and net profit ₹0 Cr. When earnings are collapsing to breakeven, a P/E of 6.20 is backward-looking and possibly deceptive. The reported ROE of 10.91% and ROCE of 10.59% look reasonable, but the trend is against it. The Piotroski F-score of 3 out of 9 is a warning light; only the weakest companies score that poorly. I also see no dividend, so I get no income while waiting. Promoter holding is not disclosed, which worries me—I want owners with skin in the game. Am I getting something for nothing? Perhaps this is an asset play if the book value is real and can be realized. But book value in a trading business is often inventory and receivables, and a declining sales line can turn those assets into losses. I would not rely on the 0.65 P/B unless I could verify liquidation value and working capital quality. As Buffett says, it is far better to buy a wonderful company at a fair price than a fair company at a wonderful price. This looks like a fair-to-weak company at a discount. I would keep it on the watchlist, but I would want proof that sales and profits stabilise before acting.

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