Sacheerome (SACHEEROME)

FairStock Score: 52/100 — MIXED

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

Key Financials

Strengths

• Profit growth of 111.91% on 51.72% sales growth shows strong operating leverage and pricing power.
• Latest quarter net profit of ₹15 Cr on ₹77 Cr sales implies a healthy roughly 19.5% net margin.
• ROCE of 38.62% is exceptional, indicating efficient capital use and a potential compounding machine.
• Promoter holding of 71.54% aligns management interests with minority shareholders.
• Piotroski F-Score of 7/9 points to sound financials despite limited disclosed balance sheet data.

Concerns

• Trailing P/E of 36.39 is expensive; any growth slowdown could trigger a sharp de-rating.
• Zero dividend yield means investors get no income support during market declines.
• Book value, ROE, and debt/equity are not provided, leaving balance sheet risk inadequately assessed.
• 52-week range of ₹249 to ₹480 reflects high volatility and possible speculative ownership.

AI Analysis

When I look at Sacheerome, I first ask: what kind of business am I buying? Specialty chemicals can be excellent if the company has pricing power and repeat customers. The numbers here are striking. Revenue grew 51.72% and profit grew 111.91%—profit far outpacing sales. In the latest quarter, ₹77 Cr of sales produced ₹15 Cr of net profit, a roughly 19.5% margin. That kind of operating leverage tells me the business is benefiting from scale and perhaps product mix. I also respect a promoter holding of 71.54%; owners have their wealth riding alongside mine. The return on capital employed of 38.62% is exceptional. It suggests this company can reinvest rupees and earn high returns, a hallmark of a compounder. The Piotroski F-Score of 7 out of 9 supports the idea that the financial footing is sound. However, I never ignore price. At ₹353, the P/E is 36.39 times trailing earnings. That is not a bargain in absolute terms. But with profit growth of 111.91%, the PEG ratio is only 0.44, indicating that if growth is durable, the market may still be underestimating the earnings power. At the same time, I have no margin of safety from dividends—yield is zero. And I was not provided book value, ROE, or debt/equity data, so I cannot fully judge the balance sheet. That bothers me. A 52-week range of ₹249 to ₹480 reminds me this stock will swing. I would want to see sustained order flows and capacity expansion before paying 36 times earnings. It is a fast grower; I would hold it only with a long-term view and the willingness to watch it fall.

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