Sangam Finserv (538714)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹107.5 |
| Market Cap | ₹100.22 Cr |
| P/E Ratio | 32.54 |
| ROCE | 7.4% |
| ROE | 4.36% |
| Dividend Yield | 0% |
| Profit Growth | -64.36% |
| Debt/Equity | — |
| Sales Growth | -36.46% |
| 52-Week Range | ₹25.55 — ₹107.5 |
| Sector | Finance |
| Book Value | ₹27.78 |
Strengths
- Still profitable in the latest quarter with ₹1 Cr net profit on ₹4 Cr sales.
- Positive, albeit low, ROCE of 7.40% shows capital is at least earning a return.
- Small market cap of ₹100 Cr may leave room for niche lending opportunities or an acquirer.
- No dividend obligation allows management to retain earnings for potential growth.
Concerns
- Sales declined 36.46% and profits fell 64.36%, indicating severe business contraction.
- P/E of 32.54 and P/B of 3.87 are very expensive for a company with low ROE of 4.36%.
- Piotroski F-Score of 3/9 signals weak financial health and possible operational stress.
- Zero dividend yield provides no income support while waiting for a turnaround.
AI Analysis
When I look at Sangam Finserv, the first thing that strikes me is the disconnect between price and business reality. This is a small NBFC with a market cap of ₹100 Cr, but the latest quarter shows sales of just ₹4 Cr and net profit of ₹1 Cr. Annualize that, and you get roughly ₹16 Cr in revenue and ₹4 Cr in profit — yet the trailing P/E is 32.54. That is a rich multiple for a company whose profits fell 64% last year and sales declined 36%. The return on equity is only 4.36%, barely better than a savings account, and return on capital is 7.40%. As Graham would say, there is no margin of safety here. The Piotroski F-Score of 3 out of 9 is a warning flag, pointing to deteriorating fundamentals across profitability, leverage, and efficiency. The stock trades at 3.87 times book value of ₹27.78, which is expensive for a business with falling earnings and zero dividend. I cannot identify any moat — a small lender in a competitive NBFC space has no pricing power and carries significant credit risk. Promoter holding is undisclosed, so I cannot judge alignment. The 52-week range shows the price has quadrupled from ₹25.55 to ₹107.50, but without underlying improvement, this looks like speculative enthusiasm. Value investing demands a fair price for a good business; Sangam Finserv is neither clearly good nor reasonably priced. I will pass.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer