SAB Industries (539112)

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

Key Financials

Strengths

• Price of ₹184.70 is slightly below book value of ₹190.17 per share, so the stock is not priced for high growth.
• Positive book value provides a stated asset cushion, even if its quality is unverified.
• ROE is positive at 0.26%, indicating the company has not completely eroded equity on an annual basis.
• The stock is at the upper end of its 52-week range, showing some market interest.

Concerns

• Sales growth is -62.16% and profit growth -89.55%; latest quarter had just ₹4 Cr revenue and a ₹15 Cr net loss.
• ROCE is -3.19% and Piotroski F-Score is 2/9, reflecting weak operational health and possible capital destruction.
• No dividend, P/E of 0.00, and unavailable debt/equity and promoter holding data reduce transparency.
• Price at ₹184.70 is the 52-week high despite deteriorating fundamentals, creating high expectations.

AI Analysis

I approach this as if I were buying the whole business, not a ticker. SAB Industries operates in civil construction, a field I can understand, but the scorecard is alarming. Sales have shrunk 62.16%, profit has fallen 89.55%, and the latest quarter generated just ₹4 Cr of revenue while losing ₹15 Cr. That is not a business with a moat; it is a business under severe strain. The P/E of 0.00 tells me there is no dependable earning power to value, and ROE of 0.26% is barely a pulse. ROCE of -3.19% means the capital tied up in the firm is actually destroying value. Graham would tell me to look at the asset cushion. Book value is ₹190.17, and the price is ₹184.70, so I am almost exactly at book. That is some comfort, but if losses keep burning ₹15 Cr per quarter, the book value is an eroding floor, not a safe one. The Piotroski F-Score of 2/9 reinforces my worry about financial health. There is no dividend to patient shareholders, and debt/equity and promoter holding data are not available, which is a red flag for transparency. The stock sits at its 52-week high of ₹184.70 despite collapsing fundamentals; that kind of divergence usually ends badly. This is, at best, an asset play if the stated book value is real and recoverable. At worst, it is a value trap. I need to see sales stabilise, losses shrink, and capital employed start earning a positive return before I commit. Until then, a near-book price is not enough margin of safety. I will wait and watch, not jump.

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