Sanmit Infra (532435)

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

Key Financials

Strengths

• Piotroski F-score of 6/9 indicates some recent improvement in financial health.
• Profit growth of 61.76% shows earnings are moving in the right direction, albeit from a low base.
• Latest quarter is profitable: net profit ₹1 Cr on sales of ₹24 Cr, so the company is not burning cash.
• PEG ratio of 0.94 suggests the market may be pricing in sustained growth, though the underlying quality is weak.

Concerns

• P/E of 58.07 and P/B of 6.15 are extremely expensive relative to ROE of 5.50% and ROCE of 7.56%.
• Sales growth of -34.13% shows a sharply shrinking business.
• No dividend means zero cash return to shareholders.
• Current price of ₹14.39 is well below the stated 52-week range of ₹48.50–₹99.00, raising data integrity or severe de-rating concerns.
• Promoter holding is not disclosed, creating a transparency red flag.

AI Analysis

Looking at Sanmit Infra, I first ask: what do I own? At ₹14.39, the market cap is ₹229 Cr, but book value is just ₹2.34. I am being asked to pay more than six times tangible equity for a business earning only 5.50% on that equity. That is not a margin of safety; that is hope. The latest quarter tells the real story: ₹24 Cr of sales and ₹1 Cr of net profit — a thin 4% margin on a shrinking top line. Sales fell 34.13%, so the 61.76% profit growth is likely a low-base effect, not durable compounding. The price sits at ₹14.39, far below the 52-week range of ₹48.50–₹99.00. Either the data is inconsistent or the market has violently repriced this stock. With no dividend, I receive no cash while I wait. Promoter holding is not disclosed, so I cannot judge whether management thinks like owners. The Piotroski score of 6/9 suggests some recent financial improvement, but that is an accounting signal, not an economic moat. In refining and marketing, you need scale, cost advantage, or protected returns. At this size, with negative sales growth and weak ROE, I see no moat. The PEG of 0.94 looks tempting, but using one year of profit growth to justify a P/E of 58 is dangerous. Graham would say price is what you pay, value is what you get. Here I would be paying a rich price for deteriorating fundamentals and no return on my investment. I will pass.

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