Spright Agro (531205)

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

Key Financials

Strengths

• Positive ROCE of 21.23% suggests some operating-level capital efficiency despite the net loss.
• Dividend yield of 1.69% provides a modest cash return to shareholders.
• The latest quarter still shows some ongoing revenue of ₹5 crore, so the business is not completely dormant.

Concerns

• Sales growth of -91.70% and latest quarter net loss of ₹10 crore show severe deterioration.
• Price-to-book of 57.59 against book value of ₹1.20 leaves no margin of safety.
• Market cap of ₹7,405 crore stands against quarterly sales of only ₹5 crore.
• Piotroski F-Score of 3/9 and ROE of -4.32% indicate poor financial health and capital destruction.

AI Analysis

As a value investor, I begin with the business. Spright Agro is a trader and distributor, but the latest quarter shows sales of just ₹5 crore and a net loss of ₹10 crore. That is not a compounding machine; it is a shrinking, loss-making enterprise. Over the year, sales collapsed by 91.70% and profits fell by 245.98%. The market, however, prices this company at ₹7,405 crore—at ₹69.11 per share—while the book value is only ₹1.20. Graham taught me to buy with a margin of safety. Here, the price-to-book of 57.59 is the absence of safety. A P/E of 0.00 cannot be trusted as cheap; it simply means earnings are not there. The 52-week range of ₹0.45 to ₹69.11 is reminiscent of a lottery ticket, not a business. A 15,000% move without fundamental support should frighten any sensible investor. ROE is negative at -4.32%, destroying owner earnings. The positive ROCE of 21.23% is intriguing, but with sales this small and losses this large, I would treat it as noise, not a durable moat. The Piotroski F-Score of 3/9 signals weak fundamentals. There is a 1.69% dividend yield, but a dividend is not a substitute for earnings power. I see no competitive advantage, no pricing power, no margin of safety. Maybe this is a speculative turnaround, but value investors do not pay 58 times book for hope. I would much rather watch from the sidelines than participate in what looks like a price mania.

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