Sattva Sukun (539519)

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

Key Financials

Strengths

• Revenue grew 190.31%, indicating strong business activity and market demand for the distribution offering.
• ROCE of 13.79% suggests operating capital is being used more efficiently than the equity return implies.
• Small market cap of ₹75 Cr leaves room for substantial upside if margins recover and profits scale.
• Price at the top of its 52-week range of ₹0.49–₹6.28 reflects strong market momentum.

Concerns

• Latest quarter has a net loss of ₹1 Cr on ₹6 Cr sales, and profit growth is -200%; growth is not translating to earnings.
• P/B of 11.02 with ROE of only 6.01% is a poor combination; shareholders are paying a rich price for weak returns.
• Zero dividend and Piotroski F-Score of 4/9 point to weak financial health and no compensation while waiting.
• No promoter holding or debt/equity data means insufficient transparency for a Graham-style investor.

AI Analysis

Let me start with what I see. Sattva Sukun is a small distributor with a market cap of ₹75 Cr, trading at ₹6.28. The first thing that catches my eye is the gap between price and book value: ₹6.28 against book value of ₹0.57, or 11 times book. Ben Graham taught that an intelligent investor needs a margin of safety; at this price, there is none. A business earning only 6.01% on equity cannot justify such a premium unless it has an extraordinary moat and predictable growth. I see no moat here. Distribution is a tough, low-margin, competitive game. The top line grew 190.31%, which sounds exciting, but profit growth is -200.00% and the latest quarter reports a net loss of ₹1 Cr on sales of ₹6 Cr. That tells me growth is being bought, not earned. The reported P/E of 16.99 is unreliable when the latest quarter is in the red. ROCE of 13.79% is better than ROE, but with no debt/equity details and no promoter holding data, I cannot trust the full picture. The Piotroski F-Score of 4/9 is a warning sign. Dividend yield is zero. This is not a compounder; it is a speculative situation. The PEG ratio of 0.09 is meaningless because it assumes a growth rate that current profits contradict. I would not call this an investment. It falls into my 'too hard' pile. If management can prove sustained conversion of sales into profits, I might revisit. As Graham said, price is what you pay, value is what you get. At ₹6.28, you are paying a lot and getting very little.

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