Sabrimala Indus. (540132)

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

Key Financials

Strengths

• Book value of ₹7.70 per share is close to the current price; P/B of 1.21 limits some downside if assets are real.
• Stock trades near its 52-week low of ₹9.20, down from ₹18.22, reducing the sentiment premium.
• Simple trading and distribution business, easy to understand, with no complex operating model.
• ROCE of 9.24% is modestly above ROE of 7.29%, suggesting the asset base is at least generating some operating return.

Concerns

• Latest quarter shows sales of ₹0 Cr and net profit of ₹0 Cr; the company currently has no evident earning engine.
• Profit growth is -23.53%, while the stock trades at a P/E of 24.88, an expensive multiple for declining earnings.
• Piotroski F-Score of 3/9 indicates weak financial health and poor fundamental momentum.
• Promoter holding is not available, and a market cap of ₹8 Cr creates liquidity and governance risks.

AI Analysis

At first glance, Sabrimala Industries looks like the kind of small, simple trading and distribution business that Graham would study line-by-line. But the numbers stop me cold. The latest quarter shows sales of ₹0 Cr and net profit of ₹0 Cr. That is not a business; it is a shell waiting to demonstrate earnings power. Sales growth is 0.00%, and reported profit growth is -23.53%, yet the market is asking ₹9.35 per share, or a P/E of 24.88 on those declining earnings. A no-moat distributor with no visible latest-quarter revenue does not deserve a premium multiple. The only comfort is the balance sheet: book value is ₹7.70 per share, so I am paying only 1.21 times book, with the stock near its 52-week low of ₹9.20 and down from ₹18.22. But price proximity to book is not enough. ROE is 7.29% and ROCE is 9.24% — mediocre returns on capital, and they are likely to worsen if profit is falling. There is no dividend yield to compensate my patience. The Piotroski F-Score of 3/9 is a red flag: poor profitability, leverage and efficiency scores. Promoter holding is unavailable; for a ₹8 Cr market cap, that is not acceptable. I cannot verify who controls this company. In the style of Graham, I require a margin of safety in assets or earnings. Here I have neither: earnings are negligible, and price is above book. This is not a fast grower or stalwart; it is a stalled enterprise that may become a turnaround only if sales and profits reappear. I would need evidence of restored sales, positive cash earnings, and a much lower entry price — preferably below book value — before I would commit a rupee. Until then, I will watch from the sidelines.

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