Standard Surfact (526231)

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

Key Financials

Strengths

• Sales growth of 57.31% shows strong top-line momentum
• Profit growth of 206.25% indicates operating leverage or margin expansion in the recent period
• Piotroski F-Score of 7/9 points to broadly sound financial health
• PEG of 0.15 suggests apparent attractiveness if current growth were sustainable

Concerns

• Latest quarter sales of ₹65 Cr produced net profit of ₹0 Cr, so recent profitability collapsed despite revenue
• ROE of 7.64% and ROCE of 5.37% are weak for a commodity chemical business
• P/E of 19.72 is rich given zero latest-quarter profit and no dividend yield
• No promoter holding or debt/equity data leaves ownership and balance sheet risk unassessed

AI Analysis

Let me start with what I like: top line grew 57.31% and profit grew 206.25%, and a Piotroski F-Score of 7/9 suggests the company isn't deteriorating. But I have learned not to chase growth in commodity chemicals. Standard Surfact earns a return on equity of only 7.64% and a return on capital of 5.37%. A business that earns this little on shareholders' money is not a wonderful company, no matter how fast sales grow for a few quarters. The latest quarter tells a different story: sales of ₹65 Cr and net profit of ₹0 Cr. So the 206% profit growth is likely a low-base or one-off artifact, not durable compounding. The price-to-earnings ratio is 19.72 and price-to-book is 1.96 against a book value of ₹32.44. For a commodity chemical maker with no pricing power and no dividend, I would want a significant margin of safety. At ₹63.44 with zero latest-quarter profit, I don't see that margin. The market cap of ₹53 Cr is small; small can grow, but small also can be fragile. Promoter holding and debt/equity data are not available, so I cannot judge stewardship or balance sheet strength. The PEG of 0.15 looks tempting, but only if the growth is sustainable. In a commodity business, today's growth often becomes tomorrow's overcapacity and falling prices. I would let this one pass unless the next few quarters prove real profit conversion and the price falls to a level that compensates for the cyclicality and weak returns.

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