Sumedha Fiscal (530419)
Asset PlayScore breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 1/1
Key Financials
| Current Price | ₹50.29 |
| Market Cap | ₹40.93 Cr |
| P/E Ratio | 5.71 |
| ROCE | 8.81% |
| ROE | 8.83% |
| Dividend Yield | 2.8% |
| Profit Growth | -87.88% |
| Debt/Equity | — |
| Sales Growth | 61.04% |
| 52-Week Range | ₹30.95 — ₹57.82 |
| Sector | Finance |
| Book Value | ₹72.8 |
Strengths
- Price ₹50.29 is a 31% discount to book value of ₹72.80, giving a tangible asset cushion.
- Trailing P/E of 5.71 and dividend yield of 2.80% provide modest valuation and income support.
- Sales growth of 61.04% indicates business activity is expanding, if it can be converted into profits.
- ROE and ROCE are both around 8.8%, showing positive, if unspectacular, capital efficiency.
Concerns
- Profit growth is -87.88%, and the latest quarter net profit is ₹0 Cr, showing severely deteriorated earnings power.
- Piotroski F-score of 4/9 points to weak or deteriorating financial health.
- ROE of 8.83% is mediocre for a financial services company and does not indicate a strong moat.
- PEG of 0.09 is misleading because it relies on high sales growth while actual profits have crashed.
AI Analysis
At ₹50.29, Sumedha Fiscal sells for only 69% of book value, with book value at ₹72.80. As Graham taught, buying below tangible net asset value offers a margin of safety if the assets are genuine. But a bargain must also show earning power. Here the picture is mixed. Trailing P/E is just 5.71, yet profit growth is -87.88% and the latest quarter produced ₹28 Cr of sales and ₹0 Cr of net profit. That is not a business compounding wealth; it is a business whose earnings have collapsed. A 61.04% sales growth rate means little if the bottom line is zero. The 8.83% ROE and 8.81% ROCE are mediocre, not the kind of franchise economics I seek. The Piotroski F-score of 4/9 reinforces caution: financial health is weak. The 2.80% dividend yield is a small comfort, but I need to know if it is covered by earnings. The PEG ratio of 0.09 is an illusion unless that 61% growth converts into profits. So this looks like an asset play, not a compounder. I would demand to understand why profits vanished, whether book value is marked fairly, and how capital is being deployed. If Sumedha can return to meaningful profitability without excessive leverage, the discount to book could be realized. If not, book value may shrink toward the market price. I would not buy blindly; I would wait patiently for evidence of a turnaround.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer