Sea TV Network (533268)

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

Key Financials

Strengths

• Trailing sales growth of 65.60% and profit growth of 76.15% show momentum, albeit from a small base.
• P/E of 6.93 and PEG of 0.09 make the stock look optically cheap if growth proves sustainable.
• Piotroski F-Score of 6/9 suggests moderate financial health, not an imminent distress situation.
• Price is at its 52-week high of ₹9.15, reflecting improved market sentiment.

Concerns

• Latest quarter shows sales of just ₹2 Cr and net profit of roughly ₹-0 Cr, so trailing earnings may not be recurring.
• ROCE is 0.00% and ROE is only 1.16%, indicating negligible returns on capital and shareholder equity.
• No dividend is paid, so shareholders receive zero cash yield while waiting for growth.
• Critical data—promoter holding, book value, and debt/equity—are unavailable, making balance-sheet risk impossible to assess.

AI Analysis

At first glance, Sea TV Network looks like an undiscovered gem: a P/E of 6.93, sales growth of 65.60%, profit growth of 76.15%, and a PEG of 0.09. But Graham taught me that figures must be read with suspicion. This is a ₹11 Cr microcap in television broadcasting, an industry of intense competition and technological change. The latest quarter tells a different story: sales were only ₹2 Cr, and net profit was essentially ₹-0 Cr. The trailing earnings that feed the low P/E may already be stale. More troubling, return on capital employed is 0.00% and return on equity is a mere 1.16%. A business that cannot earn a reasonable return on capital is not compounding wealth for owners; it is merely surviving. There is no dividend yield, so patient shareholders get no cash while waiting. I cannot evaluate promoter holding, book value, or leverage because the data is unavailable. That is a red flag—if I cannot see the balance sheet, I cannot protect my capital. The 52-week range of ₹3.38 to ₹9.15 shows the stock has nearly tripled, but price action is not business quality. A PEG of 0.09 is seductive, yet it assumes a 76% profit growth rate persists; with quarterly profitability near zero, that assumption is heroic. In Buffett's words, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' This appears to be a fair-to-poor company with a wonderful-looking price. Without a durable moat, stable earnings history, and high returns on capital, I would keep this on the 'too hard' pile. The margin of safety is not in the P/E; it's in earning power. Sea TV hasn't demonstrated it.

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