7Seas Enter. (540874)
Fast GrowerScore breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹73.5 |
| Market Cap | ₹164.07 Cr |
| P/E Ratio | 79.68 |
| ROCE | 12.03% |
| ROE | 12.71% |
| Dividend Yield | 0% |
| Profit Growth | 16.67% |
| Debt/Equity | — |
| Sales Growth | 17.21% |
| 52-Week Range | ₹63 — ₹101 |
| Sector | Entertainment |
| Book Value | ₹7.99 |
Strengths
- Double-digit growth: sales up 17.21% and profits up 16.67%.
- Decent return ratios: ROE 12.71% and ROCE 12.03%.
- Piotroski F-Score of 7/9 indicates sound profitability, leverage, and efficiency signals.
- Latest quarter shows positive momentum with ₹5 Cr sales and ₹1 Cr net profit.
Concerns
- Extremely high valuation: P/E 79.68, P/B 9.20, and PEG 4.70 leave no margin of safety.
- Zero dividend yield means no income cushion while waiting for growth.
- Small absolute earnings base with quarterly profit of ₹1 Cr increases volatility risk.
- Missing disclosures on debt/equity and promoter holding prevent a complete risk assessment.
AI Analysis
I appreciate small companies, but I never forget Graham's rule: price is what you pay, value is what you get. At ₹73.50, 7Seas Enter. is priced at 79.68 times earnings and 9.20 times book value, while book value is only ₹7.99. That is a rich price for a business growing sales at 17.21% and profits at 16.67%. The PEG ratio of 4.70 tells me the growth is already more than fully priced. The company earns a decent ROE of 12.71% and ROCE of 12.03%, and a Piotroski score of 7/9 suggests the financial position is not broken. But I do not see a durable moat in digital entertainment from these numbers; content tastes shift quickly, and competitive advantage is hard to measure. The latest quarter—sales ₹5 Cr, net profit ₹1 Cr—underlines how small this enterprise is. A ₹164 Cr market cap on a weak earnings base means large percentage moves can happen for small absolute rupee changes. There is also no dividend to compensate while I wait; yield is zero. With debt/equity and promoter holding not disclosed, I cannot fully assess financial risk or owner alignment. A fast grower must be watched for many years before I trust its quality. At this entry price, the margin of safety is absent. If growth falters, the multiple could hurt badly. I would rather miss this opportunity than overpay for it. This is a watchlist candidate—not a purchase.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer