Subam Papers (544267)

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

Key Financials

Strengths

• Revenue base: quarterly sales ₹146 Cr gives a rough annual run-rate of ₹584 Cr versus ₹418 Cr market cap, implying a modest price-to-sales of about 0.7x.
• ROCE of 13.09% indicates acceptable return on capital employed for a packaging company.
• P/E of 18.74 is not extreme if earnings normalize; market cap implies expected annual profits around ₹22 Cr.
• Listed on NSE/BSE provides a tradable, accessible small-cap exposure for investors.

Concerns

• Piotroski F-Score of 3/9 signals weak overall financial health and operating efficiency.
• Latest quarter shows a net loss of ₹1 Cr on sales of ₹146 Cr; profitability has broken down.
• Sales growth and profit growth are both 0.00%, with zero dividend yield, so there is no income or compounding support.
• Critical data is absent: book value, ROE, debt/equity, promoter holding, and 52-week range are all unavailable, making leverage and governance impossible to assess.

AI Analysis

Let me look at Subam Papers without any romance. I see a ₹418 crore market cap, a P/E of 18.74, and a business that is currently losing money in its latest quarter: sales of ₹146 crore produced a net loss of ₹1 crore. Graham's first rule is not to lose money, and the Piotroski score of 3 out of 9 is a red flag telling me profitability, balance-sheet strength and operating efficiency are all weak. This is not the profile of a compounder. The reported sales and profit growth are both zero; there is no dividend hero; and no book value, ROE, debt-to-equity or promoter holding has been disclosed. That lack of transparency alone is enough for me to move on. I cannot judge leverage or asset protection, so I have no margin of safety. What is encouraging? ROCE is 13.09%, which is respectable for a packaging business, and the annualized sales run-rate of roughly ₹584 crore versus a ₹418 crore market cap means the company is not being priced as a glamour stock. But a cheap-looking price is not value if the earnings are missing. The 18.74 P/E implies the market still expects normalized profits around ₹22 crore; the latest quarter does not support that hope. This is a possible turnaround watch, not a proven investment. I need to see positive quarterly profits, stable or rising ROCE, and an honest full set of ratios before I can even call it. Until then, I will sit on my hands. The wise investor does not confuse activity with progress.

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