Sarthak Industri (531930)

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

Key Financials

Strengths

• Price of ₹23.20 is at a steep 52% discount to book value of ₹48.20 (P/B 0.48).
• Absolute P/E of 11.11 is low, providing some margin of safety if earnings stabilize.
• ROCE of 11.05% shows the capital employed is generating a modest positive return.
• Trading near the lower end of its 52-week range, already pricing in much of the bad news.

Concerns

• Sales growth of -29.70% and profit growth of -58.65% indicate severe business deterioration.
• Latest quarter net profit of ₹0 Cr means current earnings power is nearly zero.
• Piotroski F-Score of 3/9 suggests weak financial health and rising distress risk.
• Zero dividend yield and missing promoter holding data raise transparency and shareholder-return concerns.

AI Analysis

At ₹23.20, Sarthak Industri is selling at roughly half its book value of ₹48.20. That immediately catches a Graham investor's eye. But the numbers behind the stock tell a less compelling story. This is a small trading and distribution business with a market cap of just ₹22 crore. Sales have collapsed nearly 30%, and profits are down almost 59%. The latest quarter shows sales of ₹43 crore but net profit of essentially zero. A P/E of 11.11 looks cheap, but that is trailing earnings that are rapidly evaporating. A Piotroski F-Score of 3 out of 9 is a red flag — it suggests deteriorating fundamentals, weak profitability, and possible balance-sheet stress. ROE is only 6.18%, far below what I would expect from a business with a durable moat. ROCE is 11.05%, which is modest, but with revenue falling, that return may not last. Trading and distribution businesses rarely have wide competitive advantages; customers can switch easily, and margins are often thin. The 52-week range shows the price has fallen from ₹46.79 to ₹23.20, a brutal decline. At this price, Mr. Market is offering a discount to book, but I must ask whether that book is worth its stated value. Without promoter holding data and without clear earnings power, this resembles a value trap more than a bargain. I would need to see stability in sales, a return to positive quarterly profit, and a cleaner balance sheet before acting. For now, it is a possible asset play, but not a business I would bet on without much deeper digging.

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