Sanjiv.Parant. (531569)

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

Key Financials

Strengths

• Superior capital efficiency: ROE of 25.64% and ROCE of 30.21%
• Strong growth momentum: sales up 20.23% and profit up 37.89%, with latest quarter net profit ₹3 Cr on ₹21 Cr sales
• Reasonable price-to-growth: PEG 0.99 against P/E of 28.86
• Healthy Piotroski F-Score of 7/9 suggests sound financials

Concerns

• High absolute valuation: P/E of 28.86 and P/B of 6.81 leave limited margin of safety
• Small-cap fragility: market cap of ₹238 Cr and 52-week range of ₹126–268.80 imply high volatility
• Low dividend yield of 0.26% means returns depend almost entirely on capital appreciation
• Transparency gaps: promoter holding, debt/equity, and FairStock Score are not available

AI Analysis

At ₹199.95, Sanjiv.Parant is a small pharmaceutical fish in a very big pond. Market cap is just ₹238 Cr, and the latest quarter shows sales of ₹21 Cr and net profit of ₹3 Cr. But small size is not automatically a sin. What attracts me is the combination of return on equity of 25.64% and ROCE of 30.21%. Those are impressive numbers; they suggest the business is not just growing, it is compounding capital efficiently. Profit growth of 37.89% on 20.23% sales growth tells me margins are moving in the right direction. The Piotroski F-Score of 7/9 also points to a fundamentally sound firm, not one limping on cheap debt. However, I have to be honest: I am paying 28.86 times trailing earnings and 6.81 times book value. That is not a Graham-style bargain. The PEG ratio near 0.99 suggests the growth is not yet overpaid for, but that entire argument depends on profits continuing to grow at near 38%. If growth slips to single digits, the multiple compresses painfully. The dividend yield of just 0.26% means I am not being paid to wait; my returns depend on the market eventually recognising value. Also, with promoter holding not disclosed and debt/equity not available, I am flying a bit blind on governance and leverage. In the pharma business, product mix, regulatory approvals and working capital matter more than a few quarters of momentum. I would want to see this high return profile sustained for at least five more years, and I would only buy with a meaningful margin of safety. A 52-week range of ₹126 to ₹268.80 reminds me that this stock can swing wildly. I need a larger margin of safety than this price offers, or at least continued delivery of the growth story. For now, it stays on my watchlist, not in my portfolio.

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