Svam Software (523722)

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

Key Financials

Current Price₹3.65
Market Cap₹6.18 Cr
P/E Ratio0
ROCE0.1%
ROE-0.52%
Dividend Yield0%
Profit Growth-22.22%
Debt/Equity—
Sales Growth0%
52-Week Range₹4.77 — ₹9.9
SectorIT - Software
Book Value₹12.61

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At first glance, Svam Software looks like a classic Graham asset play. The market prices it at ₹3.65, while book value stands at ₹12.61 — a P/B of 0.29. That means I am paying less than one-third of stated net worth for every rupee of assets, before even valuing any software franchise. But such a price usually comes with a reason. The latest quarter shows zero sales and zero profit; full-year sales growth is 0.00% and profit growth is minus 22.22%. This is not a thriving software products business — it is a dormant or non-operating company, and return on equity is -0.52%. As Graham would say, a stock sold below book value can be attractive only if the assets are genuinely worth their carrying cost and if management is shareholder-oriented. Here, promoter holding is not disclosed, there is zero dividend, and the Piotroski F-Score of 3/9 signals weak financial health. ROCE of 0.10% suggests the underlying capital is earning almost nothing. So the margin of safety is in the balance sheet, not in the income statement. At ₹6 crore market capitalization, if the assets are real and can be unlocked or put to work, there is room for upside; but if cash is being consumed or asset values are impaired, the apparent discount can be a trap. I would not call this a growth story. Sales are flat, profits are falling. It is an asset play, and a speculative one at that. I would need audited financials, a detailed balance sheet breakdown, related-party transactions, and management's plans for the capital before I commit. Better prices have ruined more investors than better businesses. This one requires extreme caution, not enthusiasm.

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