Sarthak Global (530993)

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

Key Financials

Strengths

• High reported ROE of 34.84% suggests the existing equity base is being used efficiently in the latest period.
• Profit growth of 36.36% and a PEG ratio of 0.63 indicate some earnings momentum, though from a negligible base.
• Piotroski F-score of 6/9 shows reasonable financial-health signals despite the operational weakness.

Concerns

• Sales growth is -97.28%, and the latest quarter reports sales of ₹0 Cr and net profit of ₹-0 Cr, implying near-total cessation of business activity.
• At ₹15.08, the price is 3.37 times book value of ₹4.48 and 22.96 times trailing earnings, offering no margin of safety.
• ROCE of 6.43% and zero dividend yield mean poor underlying return and no income support for shareholders.
• The stock trades below its 52-week low range (₹22.24–₹76.57), and promoter holding is undisclosed, adding governance and price-risk concerns.

AI Analysis

Let me start with what I know. Sarthak Global is a ₹12-crore trading and distribution company. At ₹15.08, I am being asked to pay 22.96 times earnings and 3.37 times book value, while book value is only ₹4.48. That already fails my margin-of-safety test. The last quarter shows sales of ₹0 crore and net profit of ₹-0 crore; yearly sales growth is -97.28%. You cannot value a business on profits if the business is not actually selling anything. The reported profit growth of 36.36% is meaningless from a near-zero base. ROE of 34.84% looks impressive, but with sales collapsing and ROCE of only 6.43%, this is not evidence of a durable franchise. A high return on equity built on a shrinking business is an illusion. Piotroski F-score of 6/9 suggests some routine financial health, but I do not invest based on score alone; the underlying economics must also be sound. There is no dividend, promoter holding is not disclosed, and the stock trades below its 52-week low range of ₹22.24–₹76.57. That is not a bargain; that is a warning. Graham would say price is what you pay, value is what you get. Here, the value I can measure—book value, current sales, earning power—does not support the price. If sales return and revenue is rebuilt, this may become a turnaround story. Until then, this is a speculative shell, not a compounding business. I would need many quarters of real revenue, honest disclosures, and a price closer to book value before my interest is piqued. Patience is the investor's friend; this one I will watch from a distance.

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