Sunraj Diamond (523425)

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

Key Financials

Strengths

• Sales grew 166.04%, showing the business is generating more activity from a tiny base.
• ROCE is positive at 0.46%, so operations are not entirely capital-destroying.
• Latest quarter is near breakeven with net profit of ₹0 Cr, but this is a very small comfort.

Concerns

• Net profit ₹0 Cr and P/E 0.00 mean there is no earnings support for valuation.
• ROE is -11.30% while P/B is 2.97; investors pay roughly 3 times book for negative equity returns.
• Profit growth -90.91% despite 166.04% sales growth indicates severe margin compression.
• Current price ₹10.30 is below the 52-week range low of ₹13.37, and promoter holding and debt/equity are not disclosed; a governance and liquidity red flag.

AI Analysis

At ₹10.30, Sunraj Diamond looks like a statistical curiosity rather than an investment. The market cap is only ₹6 Cr, and the latest quarter had sales of ₹1 Cr and net profit of ₹0 Cr. There is simply no earnings stream to value, so the P/E of 0.00 is meaningless. A 166.04% growth in sales sounds exciting, but profit growth of -90.91% wipes out that enthusiasm. A business that expands revenue while losing nearly all its profit is not compounding; it is burning effort. Graham would demand a margin of safety, and I do not see one: book value is ₹3.47, yet I am asked to pay ₹10.30, or 2.97 times book, for a company with return on equity of -11.30%. Every retained rupee is earning a negative return. ROCE of 0.46% is barely above zero; the business is not throwing off the kind of returns that justify optimism. The Piotroski score of 4/9 is weak, and the stock trades below its stated 52-week range of ₹13.37 to ₹23.48, which is usually a red flag, not an invitation. There is no dividend to protect me while I wait, and promoter holding is not disclosed, making governance a black box. The gems and jewellery trade is cyclical and competitive, and this company has no evident brand, scale, or pricing power to give it a moat. This is a tiny, low-quality, capital-intensive microcap selling above book value with negative equity returns. I would need to see real profits, positive ROE, and clean governance before considering it. Until then, it belongs on the too-hard pile.

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