Sampat Aluminium (544520)

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

Key Financials

Strengths

• Revenue and profit both grew around 30% (30.35% sales, 29.95% profit), showing strong recent momentum.
• Valuation appears inexpensive: P/E of 5.84 and PEG of 0.19 suggest the market is not paying enough for the growth.
• High ROCE of 28.60% signals efficient use of capital.
• Piotroski F-Score of 7/9 indicates broadly healthy financial fundamentals.

Concerns

• Critical data missing—book value, ROE, debt/equity, promoter holding and 52-week range—so a full margin-of-safety check is impossible.
• Zero dividend yield means all returns must come from capital appreciation.
• Commodity/cyclical product lines are prone to price swings and generally lack a durable moat.
• Very small market cap of ₹47 Cr may mean low liquidity and higher volatility.

AI Analysis

At ₹55, Sampat Aluminium is a tiny ₹47 Cr market cap player in a cyclical commodity space—aluminium, copper and zinc products. As a value investor, my first instinct is caution: this is not a business with an obvious proprietary moat. But the price is interesting. At 5.84 times earnings, the market is pricing in either stagnation or trouble. The recent numbers do not support that. Sales grew 30.35%, profit grew 29.95%, and the PEG ratio is just 0.19. That is the kind of bargain-plus-growth combination Graham would have studied carefully, provided the balance sheet is sound. Financial health appears decent: ROCE is a strong 28.60%, and the Piotroski F-score of 7 out of 9 suggests healthy operations and improving financials. The latest quarter shows sales of ₹81 Cr and net profit of ₹5 Cr, so the business is earning money today. Yet I must be humble about what I do not know. Book value, ROE, debt-to-equity, promoter holding and the 52-week range are absent. I cannot compute a margin of safety in the Graham sense without asset values and liabilities. The zero dividend yield is a concern; I like businesses that pay me to wait. This is a fast grower in a cyclical sector, not a stalwart. The low P/E and PEG are tantalising, but commodity processors rarely have pricing power. I would need to understand raw material sourcing, working capital cycles, and management capital allocation. The F-score helps, but it is no substitute for a full reading of financial statements. For a patient Indian retail investor, this deserves a watchlist, not a large position, until the missing data—especially book value and debt—are disclosed.

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