Sunrakshakk Inds (539300)

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

Key Financials

Strengths

• Revenue growth of 517.51% and profit growth of 327.73% show strong momentum.
• Return ratios are healthy: ROE at 17.71% and ROCE at 21.93%.
• Piotroski F-Score of 7/9 suggests decent financial health.
• PEG ratio of 0.06 indicates the valuation is cheap if hyper-growth is sustainable.

Concerns

• Valuation is stretched: P/E of 26.26 and P/B of 17.12 against book value of ₹13.94 offer little margin of safety.
• Latest quarter showing ₹164 Cr sales and ₹9 Cr profit is hard to reconcile with a ₹120 Cr market cap and 26.26 P/E, raising data reliability questions.
• Zero dividend yield means no tangible return while waiting for growth.
• Promoter holding and debt/equity are not disclosed, leaving key governance and leverage checks unanswered.

AI Analysis

One must be skeptical when a business grows 517% in sales and 328% in profits; these are the kind of numbers that catch eyes, not necessarily wallets. Sunrakshakk is an 'other textile products' company with a market cap of ₹120 Cr, trading at ₹238.70. The P/E of 26.26 and P/B of 17.12 tell me the market is paying for a fantastic story, not for asset backing. Book value is just ₹13.94, so almost every rupee of the price is future expectations. I notice a math problem: latest quarter sales are ₹164 Cr and net profit ₹9 Cr; on an annualized basis that would imply profits far larger than the market cap suggests, yet the stated P/E is 26.26. Something does not reconcile. As Graham taught, the numbers must add up before the story matters. ROE 17.71% and ROCE 21.93% are respectable, and a Piotroski F-score of 7/9 shows no obvious financial stress. But I cannot assess leverage because debt/equity is not disclosed, and promoter holding is missing; these are basic checks I never skip. There is zero dividend yield, so my patience will not be compensated while I wait. This is a fast grower, perhaps a momentum story, but not a compounding stalwart with a durable moat. Textiles are brutal, global, and price-competitive. At 17 times book and 26 times earnings, the margin of safety is inadequate. I would wait for either a much lower price, a proven track record over several cycles, or evidence that this growth is translating into free cash flow and not just quarterly noise. Extraordinary growth rates starting from a small base are often one-off surges. Let the market prove it.

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