Sandur Manganese (SANDUMA)

FairStock Score: 39/100 — MIXED

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

Key Financials

Strengths

• Strong ROE of 20.96% and ROCE of 20.78% indicate efficient capital allocation
• Promoter holding of 74.22% aligns management interests with minority shareholders
• Sales growth of 27.05% shows healthy demand and business expansion
• Piotroski F-Score of 7/9 suggests solid financial health
• Latest quarter revenue of ₹1,209 Cr demonstrates meaningful operating scale

Concerns

• Profit growth of only 2.04% despite 27.05% sales growth implies significant margin compression
• P/B of 4.38 and P/E of 17.46 leave little margin of safety for a cyclical commodity business
• Dividend yield of just 0.19% offers negligible income support during downturns
• Debt/Equity of 0.64, while manageable, adds risk to an already cyclical earnings stream

AI Analysis

Sandur Manganese is a commodity player in coal and manganese, sitting in an industry where prices are set by global cycles, not by management. The numbers show a mixed picture. On the positive side, the company earns a solid return on equity of 20.96% and ROCE of 20.78%, with a Piotroski score of 7/9, indicating healthy financials. Promoters own 74.22%, so interests are aligned. Sales grew strongly by 27.05%, and the latest quarter sales of ₹1,209 Cr with net profit of ₹116 Cr show meaningful scale. But Graham would ask about margin of safety. Profit growth is only 2.04% despite 27% sales growth—that tells me costs or prices are squeezing margins. At ₹209.92, the market values it at ₹10,504 Cr, 17.46 times earnings and 4.38 times book. For a cyclical commodity business, that is not obviously cheap. The dividend yield is negligible at 0.19%, so I am not being paid to wait. Debt-to-equity of 0.64 is acceptable, but not pristine. The 52-week range shows volatility—from ₹141.37 to ₹273.00—which is typical for a cyclical. I would not call this a stalwart or a fast grower; profit growth does not support that. This is a cyclical business. Good returns and high promoter holding are admirable, but I need a lower price or evidence of cost discipline before treating it as an investment. Commodity businesses are best bought when sentiment is poor, not when the scoreboard looks mixed.

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