Sampann Utpadan (SAMPANN)

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

Key Financials

Strengths

• Sales grew 52.56% year-on-year, with latest quarter revenue of ₹36 Cr
• Profit grew 207.95%; latest quarter net profit is ₹2 Cr
• Piotroski F-score of 6/9 suggests some recent financial improvement
• Promoter holding of 40.66% provides moderate alignment with minority shareholders

Concerns

• Book value is just ₹0.06, making P/B 532.83 and leaving no tangible margin of safety
• ROCE is -1.51% and Debt/Equity is 2.11, indicating poor operating returns and high leverage
• Zero dividend means investors depend entirely on speculative price gains
• Rubber is a commodity/cyclical business with no evident moat or pricing power, so high growth may be transient

AI Analysis

When I look at Sampann Utpadan, I am reminded why a good business and a good stock are not the same thing. The headline numbers look exciting: sales up 52.56%, profit up 207.95%, and a PEG of 0.15. But I do not buy the headline; I buy the balance sheet. Here, the balance sheet is fragile. Book value is only ₹0.06 per share, so the reported ROE of 3,563.91% is an illusion of math, not a sign of moat. With ROCE at -1.51%, the core operations are not earning a satisfactory return on capital. Debt is 2.11 times equity, and that equity cushion is nearly nonexistent. In rubber, a commodity business, I see no pricing power, and in this capital structure I see no margin of safety. The ₹146 Cr market cap is about 19 times trailing earnings, with a latest quarter profit of only ₹2 Cr on ₹36 Cr of sales. That is a thin margin, and a cyclical downturn could erase it. There is no dividend, so shareholders are betting entirely on price appreciation. Promoter holding at 40.66% is reassuring to some degree, and the Piotroski score of 6/9 is not terrible, but those are not reasons to overcome a debt-heavy balance sheet with negative operating returns. Benjamin Graham would say: price is what you pay, value is what you get. At ₹31.97, I do not see enough value to compensate for the risk. This is a cyclical speculation, not a steady compounding machine. If the rubber cycle turns unfavorable or debt servicing becomes difficult, the tiny equity base offers no protection. I would rather miss this move than risk permanent loss of capital.

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