Sameera Agro (SAIFL)

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

Key Financials

Strengths

• Sales growth of 29.87% and latest quarter revenue of ₹59 Cr versus market cap of ₹58 Cr suggest a low sales multiple.
• P/E of 4.89 implies a high earnings yield, offering potential value if profits stabilise.
• ROCE of 15.58% indicates acceptable capital efficiency.
• Promoter holding of 68.43% aligns owners with minority shareholders.
• Price is near the 52-week low of ₹4.90, creating a contrarian entry point.

Concerns

• Profit growth is down 34.28% despite 29.87% sales growth, showing severe margin compression.
• Latest quarter net margin is only about 3.4% (₹2 Cr profit on ₹59 Cr sales), which is thin and fragile.
• Piotroski F-Score of 4/9 signals weak fundamental health.
• No dividend, and missing book value/ROE/debt data limits transparency.

AI Analysis

At ₹10.05, Sameera Agro trades at a price that makes me stop and think. The market value is just ₹58 crore, yet the latest quarter shows ₹59 crore in sales. On a trailing basis, the P/E is 4.89, implying an earnings yield north of 20%. That sounds wonderful, but Graham always said cheapness can be a trap. Profit growth has fallen 34.28% even while sales grew nearly 30%. That is a classic sign of margin compression. The latest quarter's net profit is only ₹2 crore on ₹59 crore sales, roughly a 3.4% net margin. Last year's profit was materially higher, so this is not compounding; it is a cyclical squeeze. ROCE of 15.58% is respectable, but I do not have book value, ROE, or debt-to-equity, so I cannot judge the balance-sheet strength or true returns. Promoter holding at 68.43% is a plus—owners have skin in the game—but zero dividend means the small shareholder must rely purely on price appreciation. The Piotroski score of 4/9 raises a yellow flag: operational and efficiency signals are mixed. The share price has fallen from ₹28.20 to ₹10.05, a 64% haircut. Contrarian investing requires a margin of safety, and at 4.89 times earnings, there is room. But I need evidence that the decline in profitability is transitory, not permanent. The PEG of 0.16 is seductive, but with profit down 34%, that ratio is not meaningful. This looks like an agricultural cyclical, not a franchise. If farm prices improve and margins recover, the market cap could re-rate. If the profit squeeze continues, the low P/E will become deserved. I would wait for evidence of stabilized margins before buying.

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