Sharpline Broadc (543341)

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

Key Financials

Strengths

• P/B of 0.78 with book value at ₹9.97 versus price ₹7.80 provides a statistical margin of safety
• P/E of 3.80 and market cap of ₹13 Cr imply a very low absolute valuation
• Piotroski F-Score of 7/9 suggests recent financial health is not distressed
• Sales growth of 97.12% and latest quarter sales of ₹21 Cr show strong revenue momentum
• Profit growth of 1000% demonstrates rapid recent earnings expansion

Concerns

• ROCE of only 7.20% versus ROE of 50.11% implies reported profits may be non-operating or one-off in nature
• Latest quarter net profit of ₹8 Cr on sales of ₹21 Cr implies an unsustainable 38% net margin for an advertising agency
• Current price of ₹7.80 is below the stated 52-week range of ₹9.03-15.80, indicating either data inconsistency or a severe negative signal
• Promoter holding is not disclosed and dividend yield is zero, leaving minority investors blind on governance and returns

AI Analysis

At ₹7.80, Sharpline trades at just 3.8 times earnings and 0.78 times book value, while stated book value is ₹9.97. Graham would call that statistically cheap, but I have learned that a low price can hide a weak business. The ROE of 50.11% catches the eye, yet ROCE is only 7.20%. That gap bothers me. It suggests profits are not being earned by the operating assets; they may come from other income or one-off items. Advertising and media agencies have low barriers to entry and clients who can leave at will. In the latest quarter, sales of ₹21 Cr produced net profit of ₹8 Cr—a 38% margin. That is far above normal for this industry, and I am skeptical it will last. Sales growth of 97.12% and profit growth of 1000% are impressive, but from a tiny base. A PEG of 0.01 means nothing when the 'G' is a low-base explosion. The Piotroski score of 7/9 is the most encouraging sign, but that looks backward, not forward. Market cap is just ₹13 Cr, dividend yield is zero, and promoter holding is not available. With the price at ₹7.80, the stated 52-week range of ₹9.03-15.80 says the stock is below its own low; that is either a data problem or a market signal. Book value offers some cushion, but in an agency, assets are receivables and intangibles, not hard plant and machinery. This may be a fast grower on paper, but I would need audited cash flows, promoter skin in the game, and a clearer explanation of ROCE before risking capital. A cheap cigar butt can still taste terrible. I will leave this one on the shelf.

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