Sungold Capital (531433)

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

Key Financials

Strengths

• Price-to-book of 0.30 means the market prices the stock at only 30 paise per ₹1 of stated book value.
• Book value of ₹11.00 provides a substantial numerical margin of safety if the underlying assets are genuine.
• Piotroski F-Score of 6/9 suggests no severe financial distress on the available fundamentals.
• Positive ROCE of 2.00% indicates the company is not deeply loss-making at the operating level, though it is weak.

Concerns

• Latest quarter shows ₹0 crore sales and ₹0 crore net profit; the core earning engine is not operating.
• ROE of 0.26% and sales decline of -9.09% reflect very poor capital deployment and a shrinking business.
• P/E of 74.17 and PEG of 0.25 are misleading because they are based on negligible absolute earnings.
• Promoter holding and debt/equity are undisclosed; governance and leverage risks are unverifiable for an NBFC.

AI Analysis

At first glance, this looks like a classic Graham cigar-butt: ₹3.33 per share against a book value of ₹11.00, a price-to-book of just 0.30. But my first question is always: what does the business earn on that book? The answer is almost nothing. ROE is 0.26%, ROCE is only 2.00%, and the latest quarter shows ₹0 crore sales and ₹0 crore net profit. That is a dormant balance sheet, not a going concern. The P/E of 74.17 and the 300% profit growth are statistical illusions because the base is negligible; PEG of 0.25 is not a serious measure here. Sales have declined 9.09%, and there is no dividend to compensate for the wait. Is there a moat? No. A ₹6 crore NBFC with no visible earnings power cannot have pricing power, brand, or scale advantages. The Piotroski score of 6/9 is mildly reassuring, but for an NBFC, the important things are loan quality, leverage, and promoter integrity. I don't know the debt/equity ratio, promoter holding is undisclosed, and there is no quarter of real income to verify. Graham would look at the 70% discount to book and say 'maybe there is value,' but he would also demand evidence that the book can be turned into cash without impairment. This is an asset play with optionality, not a business I can analyze with confidence. I need audited asset quality, a clear capital plan, and proof of positive earning power before I use my money. Until then, the low price may be a warning, not an opportunity.

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