Sanghvi Movers (SANGHVIMOV)

FairStock Score: 40/100 — MIXED

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

Key Financials

Strengths

• Promoter holding of 47.25% aligns owner-manager interests.
• Debt/equity of 0.41 is moderate, and Piotroski F-Score of 6/9 suggests decent financial health.
• Sales growth of 13.38% and latest quarter sales of ₹236 Cr show the business is still expanding.
• P/E of 12.89 and price near the lower end of the 52-week range offer potential value if earnings stabilize.

Concerns

• ROCE reported at 0.00% is a serious red flag — the company appears to earn nothing on capital employed.
• Profit growth of 5.89% trails sales growth of 13.38%, indicating margin pressure.
• FairStock Score of 26/100 flags the stock as risky, and it is down sharply from its 52-week high of ₹528.
• P/B of 2.49 and dividend yield of 0.77% provide limited Graham-style margin of safety.

AI Analysis

At ₹308.96, Sanghvi Movers sells at 12.89 times earnings and 2.49 times book. I like buying decent businesses at fair prices, but I first ask: what kind of business is this? It is a diversified commercial services firm, and the figures tell me this is not a wonderful compounder. Sales grew 13.38%, yet profit rose only 5.89%. That tells me margins are being squeezed, and the latest quarter — ₹236 crore in sales, ₹29 crore in profit — is not suggesting pricing power. The balance sheet is acceptable: debt/equity of 0.41 is manageable, promoter holding of 47.25% is reassuring, and a Piotroski score of 6 out of 9 implies moderately healthy operations. Book value is ₹124.28, so price is more than double book — not a deep Graham bargain. ROE of 13.31% is respectable, but not outstanding. What bothers me more is ROCE reported at 0.00%. If that is accurate, the company earns nothing on the capital it deploys; I cannot justify buying a sub-par return on capital. The stock has fallen from a 52-week high of ₹528 to ₹308.96, which looks tempting, but a falling knife is only interesting if the underlying earnings are durable. The FairStock Score at 26/100 flags risk. This smells like a cyclical business: in good times sales grow, but profit growth falls behind and capital efficiency weakens. I would not call it a fast grower; it is a cyclical, maybe a slow grower at best. Graham would demand a margin of safety. At 12.89 times earnings and with a 0.77% dividend yield, I am not getting paid enough to take the cyclical risk. I would wait for better numbers: consistent ROCE, improving margins, or a lower price.

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