SGL Resources (526544)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹8.06 |
| Market Cap | ₹216.33 Cr |
| P/E Ratio | 78.18 |
| ROCE | 1.64% |
| ROE | -0.1% |
| Dividend Yield | 0% |
| Profit Growth | -8.16% |
| Debt/Equity | — |
| Sales Growth | 81.86% |
| 52-Week Range | ₹1.82 — ₹8.06 |
| Sector | IT - Services |
| Book Value | ₹6.59 |
Strengths
- Strong revenue momentum: sales growth of 81.86% and latest quarter sales of ₹39 Cr.
- Book value of ₹6.59 and P/B of 1.22 provide a meaningful asset cushion.
- Near-zero earnings base creates potential for sharp profit growth if margins improve.
- Trading at its 52-week high of ₹8.06 indicates market interest and momentum.
Concerns
- No real profitability: latest quarter net profit is ₹0 Cr, profit growth is -8.16%, and ROE is -0.10%.
- Very expensive on earnings: P/E of 78.18 with negative/zero profit growth.
- Weak capital efficiency: ROCE of 1.64% and Piotroski F-Score of 4/9 suggest poor financial health.
- No dividend and missing promoter holding data reduce transparency and shareholder return.
AI Analysis
At first glance, 81.86% sales growth catches my eye. But Ben Graham taught me to look through the windshield, not the rear-view mirror. SGL Resources may be growing revenue, but it is not yet making real money: latest quarter net profit is zero, profit growth is -8.16%, and return on equity is -0.10%. A P/E of 78.18 for a business with no profit growth is the kind of mathematics I cannot swallow. The price has run from ₹1.82 to ₹8.06, a 52-week high, while book value is ₹6.59. So the market is paying ₹1.22 for every ₹1 of assets. That is not a bargain; it is a fair price for a mediocre earner. ROCE of 1.64% is below what an Indian saver gets from a fixed deposit. The Piotroski F-Score of 4/9 tells me the financial health is weak, not a signal of improving fundamentals. The PEG ratio of 0.96 looks tempting, but it is based on sales growth, not actual profit growth; with profit falling, the PEG is misleading. No dividend means I am not being paid to wait. I need margin of safety. Without promoter holding data, I cannot judge alignment. This has some characteristics of a turnaround: revenue bursting, asset base ₹6.59 per share, and operating leverage if margins ever appear. But I buy evidence, not hopes. I will watch whether sales growth converts into positive net profit and improving ROE. If that happens, the story changes. Until then, this is a speculation, not an investment.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer