Samrat Pharma (530125)

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

Key Financials

Strengths

• Book value of ₹232.67 per share provides asset backing; P/B of 1.47 is not excessive if earnings recover.
• ROCE of 13.21% suggests operating capital still generates a positive return.
• Latest quarter sales of ₹63 Cr indicate a meaningful revenue base despite flat growth.
• Positive dividend yield of 0.48% shows a small cash return to shareholders.

Concerns

• Net profit is effectively zero (-₹0 Cr) and profit growth is -116.55%; ROE is -2.41%.
• Piotroski F-Score of 3/9 signals weak underlying financial health.
• P/E is meaningless at 0.00 because current earnings do not support valuation.
• At ₹341.90, near the 52-week high and at 1.47 times book, there is little margin of safety.

AI Analysis

Let me start with what I look for: a durable business, a moat, and consistent returns on capital. Samrat Pharma fails the first test. The latest quarter shows sales of ₹63 Cr, but net profit is -₹0 Cr, and ROE is -2.41%. This is not a profit engine; it is a capital user. Sales growth is -0.36%, so there is no expansion to rescue the story. The P/E ratio is quoted as 0.00, which tells me earnings are effectively zero; Graham would ignore such a multiple. At ₹341.90, the stock trades near its 52-week high and at 1.47 times book value. Book value of ₹232.67 per share offers some asset support, but a good business must earn a return on those assets. ROCE of 13.21% is respectable at the operating level, but the negative ROE means the equity holders are not seeing the benefit. The Piotroski F-Score of 3/9 reinforces my concern: weak profitability and weak financial health. A dividend yield of 0.48% is hardly a reason to own the stock. There is no promoter holding data, so I cannot judge alignment. In this situation, I would not call Samrat Pharma a compounder. The 52-week range from ₹190 to ₹341.90 shows momentum, but value investing is not about momentum. If the operating return can be converted into net profit, and if sales growth resumes, this could become a turnaround case. But that is a hope, not a conclusion. With a P/B of 1.47 and no current earnings power, the margin of safety is thin. I would pass until the company demonstrates several quarters of positive earnings, stronger returns on equity, and clearer evidence of a competitive advantage.

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