Sammaan Capital (SAMMAANCAP)

FairStock Score: 54/100 — MIXED

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

Key Financials

Strengths

• Trading at P/B of 0.55 against book value of ₹263.34, with Graham Number of ₹320.26 implying a 53% margin of safety.
• Piotroski F-Score of 8/9 indicates a relatively healthy and improving balance sheet.
• Positive free cash flow of ₹3,194 Cr and latest quarter net profit of ₹314 Cr provide cash generation support.
• Debt/equity of 1.96 appears manageable for a housing finance company.

Concerns

• Low profitability with ROE of 5.87% and ROCE of 3.65% suggests limited earning power on shareholder capital.
• Stagnant growth: sales growth of just 0.74% and profit growth of 3.85% show no momentum.
• Zero promoter holding and zero dividend yield raise governance and shareholder alignment concerns.
• Altman Z-Score of 0.86 is a caution flag, though it is less meaningful for a regulated financial firm.

AI Analysis

At ₹144.25, Sammaan Capital sells at only 0.55 times its ₹263.34 book value. My Graham instincts cannot ignore that, but cheapness must never be confused with goodness. This is a housing finance company with weak momentum: sales rose only 0.74%, profits 3.85%, and return on equity is a modest 5.87%. A business earning about 6% on equity is not a franchise; it is a commodity lender. There is no promoter holding and no dividend, so I have neither an owner-captain nor a cash coupon while I wait. The balance sheet shows some positives: Piotroski F-score of 8/9, positive free cash flow of ₹3,194 Cr, and last quarter net profit of ₹314 Cr against sales of ₹2,158 Cr. Debt/equity of 1.96 is acceptable for a housing financier, though the low Altman Z-score and an EV/EBITDA of 553 make me pause; these ratios, however, are not ideal for judging a financial firm. Graham Number of ₹320.26 offers 53% margin of safety, and DCF suggests ₹467.62 of intrinsic value. If the book value is real and asset quality holds, the downside appears protected; if it were growing or earning better, I'd be enthusiastic. Instead, I see a possible asset play: buy a rupee of assets for 55 paise, wait for management to earn a decent return, or unlock value to shareholders. I would much prefer a wonderful business at a fair price, but in this market, a fair financial company at half book deserves a place on my radar. Need to monitor whether ROE climbs above 6%, growth accelerates, and whether any large shareholder or real owner appears.

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