Swastika Investm (530585)

FairStock Score: 23/100 — RISKY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Let me examine this the way Graham would: what am I buying, and at what price? Swastika Investm is a stockbroking firm—an inherently cyclical, low-moat business where customers can leave at the click of a button. The recent numbers are not encouraging. Sales are down 17.80%, and profits have fallen 39.61%. The latest quarter shows just ₹28 Cr in sales and ₹4 Cr in net profit—nowhere near the pace needed to support a ₹1,302 Cr market cap. The trailing P/E of 10.47 looks cheap only because past earnings were much higher. As a value investor, I am suspicious of earnings at the top of a boom. The balance sheet shows book value of just ₹42.17 per share, while the stock trades at ₹879.55—a P/B of 20.86. That is not value; that is euphoria. ROE of 16.54% and ROCE of 32.56% look fine, but in a commodity business, high returns attract competition and quickly revert. The Piotroski score of 3/9 reinforces my worry about deteriorating financial health. The 52-week range, from ₹43.65 to ₹879.55, tells me Mr. Market has swung violently; this is a speculative favourite, not a stable franchise. With a dividend yield of only 1.09%, I am not being paid to wait. The margin of safety is absent. In Graham's words, an investment operation must protect principal and provide adequate return. This does neither. I would put this in the 'too hard' pile until earnings stabilise and the price returns to something closer to intrinsic value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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