SagarSoft (India (540143)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 1/1
Key Financials
| Current Price | ₹207.55 |
| Market Cap | ₹132.67 Cr |
| P/E Ratio | 0 |
| ROCE | 11.28% |
| ROE | 5.9% |
| Dividend Yield | 2.27% |
| Profit Growth | -32.85% |
| Debt/Equity | — |
| Sales Growth | 27.74% |
| 52-Week Range | ₹56.2 — ₹207.55 |
| Sector | IT - Software |
| Book Value | ₹96.69 |
Strengths
- Top-line growth of 27.74% shows revenue momentum and some customer demand.
- ROCE of 11.28% indicates reasonable operating capital efficiency despite weak net returns.
- Dividend yield of 2.27% provides some tangible cash return to shareholders.
- Book value of ₹96.69 provides an asset reference point, though price is far above it.
Concerns
- Latest quarter net loss of ₹1 Cr and P/E of 0.00 leave no reliable earnings to value.
- Profit growth of -32.85% despite 27.74% sales growth suggests severe margin compression.
- ROE of just 5.90% against a price-to-book of 2.15 means paying a premium for low returns.
- Piotroski F-Score of 4/9 signals weak financial health; stock sits at its 52-week high after rallying from ₹56.20.
AI Analysis
At ₹207.55 this is the kind of stock that makes me reach for a blank sheet of paper. A Graham disciple first asks: What am I really buying? Here I have a tiny ₹133 Cr software consulting business with a trailing P/E of 0.00 — in plain terms, no dependable earnings. The latest quarter shows sales of ₹43 Cr but a net loss of ₹1 Cr. Sales are growing at 27.74%, yet profit has fallen 32.85%; that is growth without quality. ROE is just 5.90%, while I can get a similar return by doing nothing. At 2.15 times book value, the market is asking me to pay ₹207 for every ₹96.69 of net worth, and to accept a business earning less than 6% on that equity. ROCE of 11.28% is better, but with a F-score of only 4 out of 9, the underlying financial health is weak. There is no real moat in competitive software consulting; clients can replace you. The stock has raced from ₹56.20 to ₹207.55, so a lot of optimism is already in the price. The 2.27% dividend is nice, but a dividend can be cut when profits are red. I cannot value a company with no earnings and falling profits — that is speculation, not investment. I need a margin of safety. At this price, there is none. I would rather miss the rally than lose capital. If the business can genuinely turn around, produce positive profit consistently and raise ROE above 15%, I will revisit. Until then, this belongs in the 'too hard' pile.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer