Sparkle GoldRock (530037)

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

Key Financials

Strengths

• Sales grew 1,905.70% and profit grew 1,000%, showing explosive reported momentum.
• Latest quarter net profit of ₹1 crore on sales of ₹46 crore shows the business is currently generating a positive bottom line.
• ROE of 82.08% suggests high return on shareholders' funds, though it conflicts with other data.
• PEG of 0.01 and P/E of 21.10 indicate the market is paying a relatively low multiple for recorded growth.

Concerns

• ROCE is negative at -12.93%, meaning the capital employed in operations is actually earning a negative return.
• Current price of ₹13.54 is below the stated 52-week low of ₹61.67, creating a major red flag about data consistency or a possible corporate action.
• Key reported numbers do not reconcile: a ₹6 crore market cap at P/E 21.10 implies only ~₹0.28 crore earnings, versus ₹1 crore quarterly profit and 82% ROE.
• No debt/equity, promoter holding, or dividend data; the ₹6 crore market cap makes it illiquid and highly vulnerable for retail investors.

AI Analysis

Reading Sparkle GoldRock, my first reaction is confusion—and for a value investor, confusion is a stop sign, not a buy signal. The market cap is just ₹6 crore, yet the 52-week range says the stock traded between ₹61.67 and ₹104.85; at ₹13.54, we are trading below that range. That alone demands explanation before any enthusiasm. The reported growth is extraordinary: sales up 1,905.70% and profit up 1,000%. The latest quarter shows sales of ₹46 crore and net profit of ₹1 crore. But the P/E of 21.10 on a ₹6 crore market cap implies annual earnings of roughly ₹0.28 crore—not four quarters of ₹1 crore. The book value is ₹3.22, P/B is 4.20, ROE is 82.08%. These numbers do not reconcile. Graham taught me arithmetic before narrative. A story cannot be valued if the numbers don't add up. Business quality? This is 'Other Textile Products,' a commodity-like industry, with no obvious pricing power or durable moat. ROCE is negative at -12.93%, so while ROE looks spectacular, the capital employed is actually destroying value. No debt-equity data, no promoter holding data, no dividend—an information vacuum. I cannot trust what I cannot verify. The PEG of 0.01 screams cheap only if the growth is real and sustainable. In a ₹6 crore company, such growth can vanish as quickly as it arrived. The Piotroski score of 6/9 is average, not compelling. I would not buy this. I would wait until the story becomes simple, consistent, and priced honestly.

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