Sumeru Industrie (530445)

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

Key Financials

Strengths

• Book value per share is ₹1.55, so the market price of ₹1.83 is only 1.18 times net assets, offering some tangible asset backing.
• Market cap is just ₹14 crore, so a small absolute revival in operations could have an outsized percentage impact on the share price.
• Sales growth is flat at 0%, indicating no recent collapse in the revenue base, though profit generation remains the core problem.

Concerns

• Latest quarter shows ₹0 sales and ₹0 net profit—operations appear to be dormant.
• ROE of 0.58% and ROCE of 1.15% are far below any reasonable cost of capital; shareholder money is earning almost nothing.
• Profit growth is -33.33%, P/E is 196.83, and the Piotroski F-Score is 3/9, pointing to weak financial health and poor earnings quality.
• Debt/Equity and promoter holding are N/A, leaving capital structure and insider ownership unclear.

AI Analysis

Looking at Sumeru Industrie, my first instinct as a value investor is to ask what the business actually earns on its assets. The answer is discouraging: ROE is only 0.58% and ROCE is 1.15%. My fixed deposit pays more than that without the risks of being a shareholder. The latest quarter shows ₹0 sales and ₹0 net profit, and profit growth is down 33.33%. This is not a growing machine; it is a company that is, for now, barely alive. A P/E of 196.83 is meaningless when earnings are near zero—it tells me I am paying an enormous multiple for almost no earning power. The only tangible support is book value of ₹1.55 against the price of ₹1.83, so the market cap of ₹14 crore is just 18% above net book value. That could cushion downside if the assets are genuine and liquid, but it is not the deep discount Graham would demand. The Piotroski score of 3/9 points to weak financial health, and with zero dividend, I receive no compensation while I wait. Sales growth is flat at 0%, so there is no top-line driver. In trading/distribution, there is rarely a moat, and these numbers confirm that Sumeru has no pricing power or competitive edge that I can identify. This is at best an asset play, and only if auditors can vouch for the book value. I need a substantial margin of safety—ideally a price below net book value and evidence of returning sales—before I would even put them on my watchlist. Right now, the risk-reward is unacceptable.

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