Sar Auto Prod. (538992)
Slow GrowerFairStock Score: 15/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹2,075.75 |
| Market Cap | ₹1,010.03 Cr |
| P/E Ratio | 1,000 |
| ROCE | 2.52% |
| ROE | 0.65% |
| Dividend Yield | 0% |
| Profit Growth | 40% |
| Debt/Equity | — |
| Sales Growth | 1.7% |
| 52-Week Range | ₹1,840.95 — ₹2,387 |
| Sector | Auto Components |
| Book Value | ₹36.12 |
Strengths
- Piotroski F-Score of 7/9 indicates relatively sound balance-sheet and operating efficiency signals.
- Sales growth of 1.70% is positive, showing some top-line stability.
- Profit growth of 40.00%, though from a low base, suggests some earnings momentum.
Concerns
- P/E of 1000 and PEG of 32.87 imply extreme overvaluation.
- ROE of 0.65% and ROCE of 2.52% are far below acceptable returns on capital.
- Latest quarter had net profit of ₹0 crore on sales of ₹4 crore, indicating no current profitability.
- P/B of 57.47 against book value of ₹36.12 and zero dividend yield leave no margin of safety.
AI Analysis
When I look at Sar Auto Prod., my first thought is that Mr. Market has let enthusiasm replace arithmetic. The company earns very little—ROE is 0.65% and ROCE is just 2.52%. At ₹2,075.75 per share, market capitalisation is ₹1,010 crore. That means I would be paying 1,000 times earnings and 57.47 times book value. Book value is only ₹36.12 per share. This is a price that assumes perfect execution, yet the latest quarter shows sales of ₹4 crore and net profit of ₹0 crore. Dividend yield is zero, so the investor depends entirely on price appreciation. There are some positives. Piotroski F-Score of 7/9 suggests reasonable financial health, and sales growth of 1.70% is positive, though weak. Profit growth of 40% sounds encouraging, but the base is tiny; a PEG of 32.87 shows the market is paying far too much for that growth. The FairStock Score of 13/100 says risky, and I agree. A Graham-style investor demands a margin of safety. Here I see none. At 57 times book with sub-1% ROE, even a successful multi-year turnaround would struggle to justify the price. Auto components can be cyclical, and small players face pricing power issues. With the latest quarter earning nothing, the company is not generating adequate returns on capital. I would not buy at this level. I would wait for consistent quarterly profits, meaningful sales acceleration, and ROE/ROCE above at least 10%. Until then, this is speculation, not investment. As Buffett said, price is what you pay, value is what you get. Here, you are paying far too much.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer