Sunshine Capital (539574)

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

Key Financials

Strengths

• Book value per share is ₹1.47, so there is a measurable asset base behind the equity.
• At P/B of 1.56, the market is paying a premium but not an extreme one if the stated assets are genuine.
• The stock has risen from ₹0.17 to its current 52-week high of ₹2.30, showing market interest and possible catalysts.
• The stated trailing P/E of 4.68 is optically cheap, provided the earnings number can be verified.

Concerns

• Sales growth of -50.22% and profit growth of -77.78%; latest quarter sales are just ₹1 Cr and net profit is ₹0 Cr.
• ROE of 3.10% and ROCE of 0.18% indicate no meaningful earnings power.
• The P/E of 4.68 is inconsistent with the ROE and latest quarterly profit, making the financial picture unreliable.
• No dividend, no promoter holding data, and no debt/equity disclosure create governance and leverage opacity.

AI Analysis

Let me start with the obvious: this is not a business I can admire. Sunshine Capital is an NBFC, and in that business trust, asset quality, and cost of capital are everything. Here I see a company with sales down 50.22% and profits down 77.78%, a latest quarter of ₹1 Cr sales and ₹0 Cr net profit, and return on equity of just 3.10%. A return of 3% on book is less than what an investor can expect from a well-run bank, and the 0.18% ROCE is a red flag. The F-score of 3/9 tells me the fundamentals are deteriorating. The supposed P/E of 4.68 makes no sense to me. Market cap of ₹1,231 Cr against a P/E of 4.68 implies earnings of roughly ₹263 Cr, but the latest quarter shows no profit, and the ROE implies a much smaller number. If I cannot reconcile those figures, I cannot take the cheapness at face value. What is real is the book value of ₹1.47 per share, and even there the market is paying ₹2.30, a 56% premium. No dividend, no promoter holding data, negative growth—this has none of the margin of safety I demand. The stock has gone from ₹0.17 to ₹2.30, so Mr. Market has already written a bullish story. I prefer to buy a wonderful business at a fair price, not a struggling financial company at an unexplained price. If the assets are truly worth book value, this could be an asset play, but with zero current earnings and a Piotroski score of 3, I would wait for proof. Show me real net profit, stable loan book, and honest accounting before I invest. Until then, I pass.

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