Sangam India (SANGAMIND)

FairStock Score: 37/100 — MIXED

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I appreciate a good turnaround, but I buy proof, not hope. Sangam India shows a 1000% profit growth figure, yet that is from a thin base. The latest quarter earned ₹24 Cr on ₹762 Cr of sales, but the trailing P/E is still 35.36. Graham would remind me that a low earnings yield and a P/B of 2.64 against book value of ₹200.97 leave little margin of safety for a business earning only 6.17% on equity and 6.63% on capital employed. Sales growth is just 2.07%, so this is not a compounding franchise. The 0.07 PEG is seductive, but the denominator is a one-year earnings jump, not durable growth. I also see debt/equity of 1.19; in a cyclical textile business, leverage turns temporary downturns into permanent losses. Free cash flow is negative despite reported profits, and the dividend yield of 0.43% means I am not paid to wait. There are some encouraging signs: the Piotroski F-Score is 7/9, promoters own 70.35%, and the latest quarter is profitable. These suggest the operation may be stabilizing. But at ₹530, the market is already paying for perfection. I would wait for a lower price, stronger cash conversion, and a cleaner balance sheet. This is a cyclical recovery, not a predictable grower, and I can afford to pass.

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