Satchmo Holdings (533202)

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

Key Financials

Strengths

• Quarterly net profit of ₹1,128 Cr dwarfs the ₹58 Cr market cap; if cash-backed and repeatable, it could be balance-sheet transformative.
• Reported profit growth of 278.87% shows a sharp swing from the earlier period, even if quality needs verification.
• Piotroski F-Score of 5/9 is not a worst-case score, suggesting some fundamental measures are holding up.

Concerns

• Net profit of ₹1,128 Cr against quarterly sales of ₹3 Cr is an extraordinary mismatch; this profit is unlikely to be operational or recurring.
• ROE of -110.94% and ROCE of 0% signal severe shareholder-value destruction and no productive return on capital.
• Sales fell 15.53%, dividend yield is 0%, and no promoter holding/book value/debt-equity data are available, leaving the business opaque.
• A P/E of 0.00 and price near the low end of the 52-week range indicate the market is skeptical, not valuing it as an earnings machine.

AI Analysis

Let me start with a rule from Graham: when a quarterly 'profit' is hundreds of times bigger than revenue, do not call it earnings. This company reported sales of ₹3 crore and net profit of ₹1,128 crore in the same quarter. Against a market cap of ₹58 crore, that profit is absurd. It is almost certainly an exceptional item, an accounting credit, or an asset write-up. In Omaha, we look for repeatable economics, not one-line miracles. Sales have fallen 15.53%, so the underlying business is shrinking. ROE is -110.94%, meaning the equity base is deeply impaired. ROCE is zero, so even the capital employed in the business earns nothing. With book value, debt/equity ratio, and promoter holding all unavailable, I cannot apply any margin of safety. A Piotroski F-score of 5/9 is merely mediocre; it does not compensate for opaque financials. There is no dividend, and the stock trades at ₹3.79, near the lower half of its ₹3.00-₹6.78 range—this is speculation, not investment. If the ₹1,128 crore is genuine cash or a real asset recovery, it could transform the company. But I have no evidence of that. I need audited cash flows, full balance sheet, and proof that management can turn this into recurring earnings. The reported profit growth of 278.87% is meaningless if it comes from a one-time event. As Buffett says, we should pay for certainty, not hope. Until Satchmo explains the source of this profit and shows improving sales, positive ROE, and transparent ownership data, I would rather pass. This is a possible turnaround, but currently it is a too-hard pile.

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