Source Natural (531398)
Fast GrowerScore breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹171.5 |
| Market Cap | ₹110.39 Cr |
| P/E Ratio | 29.41 |
| ROCE | 16.64% |
| ROE | 13.43% |
| Dividend Yield | 0% |
| Profit Growth | -19.61% |
| Debt/Equity | — |
| Sales Growth | 94.26% |
| 52-Week Range | ₹96.55 — ₹171.5 |
| Sector | Pharmaceuticals & Biotechnology |
| Book Value | ₹33.16 |
Strengths
- Sales growth of 94.26% shows strong demand or business expansion.
- ROCE of 16.64% suggests reasonably efficient use of capital.
- ROE of 13.43% is positive and respectable.
- Latest quarter is profitable with ₹20 Cr sales and ₹1 Cr net profit.
Concerns
- Profit fell 19.61% despite 94.26% sales growth, indicating margin pressure.
- Latest quarter net margin is only about 5% (₹1 Cr on ₹20 Cr), leaving little cushion.
- Valuation is stretched: P/E 29.41, P/B 5.17, and price at the 52-week high of ₹171.50.
- Piotroski F-Score of 4/9 and unavailability of promoter holding data weaken confidence.
AI Analysis
When I look at Source Natural, the first number that jumps out is 94.26% sales growth. That is the kind of top-line momentum that excites the stock market, and the price at ₹171.50, the top of its 52-week range, shows that enthusiasm. But I learned long ago that sales are vanity, profit is sanity. While sales are growing, profit fell 19.61%. The latest quarter tells the story: ₹20 crore of revenue produced only ₹1 crore of net profit, a 5% margin. That is thin, and it means the market is paying 29.41 times earnings and 5.17 times book value for a business whose earnings are going backwards. Graham would demand a margin of safety. I do not see it at this price. Book value is ₹33.16, so the stock costs five times what shareholders own. ROE of 13.43% and ROCE of 16.64% are respectable but not the kind of durable, moat-protected returns I want. The Piotroski F-Score of 4/9 troubles me: underlying financial health is weak, not strong. Promoter holding is not available, so I cannot judge alignment. No dividend means my return depends entirely on hope and a higher price later. PEG of 0.31 looks attractive only if 94% sales growth turns into profit; the 19.61% decline in profit says it has not yet. If management can convert this growth into earnings, margins recover, and balance-sheet quality improves, I will study it again. But at this price, this is not an investment; it is speculation. I will wait.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer