Sakar Healthcare (SAKAR)

FairStock Score: 39/100 — MIXED

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

Key Financials

Strengths

• Revenue growth of 62% and profit growth of 124% demonstrate strong near-term momentum.
• Debt-to-equity of 0.28 keeps the balance sheet conservative.
• Piotroski F-Score of 7/9 signals improving fundamentals and operational strength.
• Promoter holding of 52.86% aligns management interests with minority shareholders.
• Latest quarter sales of ₹70 Cr and net profit of ₹10 Cr show a meaningful operating scale.

Concerns

• P/E of 43.64 and P/B of 4.65 leave little margin of safety at the current price.
• ROCE of only 8.54% and implied ROE around 10.6% indicate mediocre capital efficiency.
• Zero dividend yield means investors rely entirely on price appreciation.
• FairStock Score of 34/100 and a 52-week range of ₹311–₹980 highlight speculative volatility and risk.

AI Analysis

As a Graham-and-Buffett disciple, I first ask what a business earns on capital, not what the market hopes it will earn. Sakar Healthcare's sales jumped 62% and profit 124%, and the latest quarter shows ₹70 Cr sales and ₹10 Cr net profit. That is exciting, but excitement is not my friend. At ₹633.65, I pay 43.64 times trailing earnings and 4.65 times book. The implied ROE is only about 10.6%, and ROCE is just 8.54%. A wonderful business earns far more on capital; this looks like a growth story still searching for quality. The balance sheet is decent: D/E 0.28, and the Piotroski F-Score of 7 suggests improvement. Promoters own 52.86%, so incentives are aligned. But dividend yield is zero — I get no cash while I wait. The PEG of 0.47 appears cheap only if 62% sales growth and 124% profit growth persist. In competitive pharma, such rates rarely do. The 52-week range of ₹311 to ₹980 tells me this stock has become a speculation. FairStock score of 34/100 calls it risky, and I agree. Ben Graham said price is what you pay, value is what you get. I do not see a margin of safety paying 43 times earnings for a roughly 10% ROE business. This is not something I can confidently value. I would rather wait on the sidelines. If Sakar can keep growing, improve ROCE into mid-teens, and avoid speculative pricing, I will revisit with a calculator, not emotions. Today, the risk-reward does not favor the prudent investor.

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