Sawaca Enterpri. (531893)

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

Key Financials

Strengths

• Trades at 0.53 times book value, a stated 47% discount to ₹1.24 book value per share.
• Market cap of ₹38 Cr is far below derived book equity of roughly ₹71 Cr, providing an asset cushion if the book value is trustworthy.
• ROCE is positive at 5.12%, suggesting some operational return before financing despite negative ROE.
• Latest quarter reported no net loss, with net profit at ₹0 Cr on ₹11 Cr sales.
• The business still has operating activity, with quarterly sales of ₹11 Cr.

Concerns

• Sales growth collapsed by 53.52% and profit growth fell 32.79%, showing severe contraction.
• ROE is negative at -1.83% and latest quarterly net profit is zero, so equity is not generating returns.
• Piotroski F-Score of 3/9 indicates weak financial health.
• No dividend, no promoter holding disclosure, and a meaningless P/E of 0.00 due to negligible earnings.

AI Analysis

At ₹0.66, Sawaca Enterpri looks like a Graham statistical bargain at first glance. The market capitalisation is only ₹38 crore, while the stated book value is ₹1.24 per share. That means I am being asked to pay 53 paise for every rupee of book value—a 47 percent discount. But Graham never stopped at the cover of the balance sheet. He demanded that assets produce earnings or be liquidated at fair value. Here, the business is contracting. Sales fell 53.52 percent, and profits fell 32.79 percent. Return on equity is minus 1.83 percent; the shareholders' assets are earning a negative return. ROCE is only 5.12 percent, hardly a satisfying yield. The latest quarter shows ₹11 crore in sales and exactly zero net profit. The Piotroski score of 3/9 reinforces the worry: financial health is poor. There is no dividend to compensate me while I wait. P/E of 0.00 is not meaningful when earnings are negligible. Where is the moat? This is a diversified commercial services company, and I see no durable competitive advantage, no pricing power, no brand. The bull case rests entirely on the asset value. If book value is real and a catalyst exists to unlock it, perhaps there is value. But falling revenues often mean declining asset worth. With promoter holding undisclosed, I cannot assess skin in the game. This is not a wonderful business at a fair price; it is a troubled asset selling at a discount. I would need a very deep margin of safety and a clear path. I will not confuse a low price with intrinsic value. This is a possible asset play, not a compounding machine.

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