Sansera Enginee. (SANSERA)
Fast GrowerFairStock Score: 51/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹3,924.6 |
| Market Cap | ₹24,490.9 Cr |
| P/E Ratio | 75.76 |
| ROCE | 13.38% |
| ROE | 17.19% |
| Dividend Yield | 0.08% |
| Profit Growth | 38.3% |
| Debt/Equity | 0.19 |
| Sales Growth | 33.3% |
| Free Cash Flow | ₹-580 Cr |
| Promoter Holding | 30.17% |
| 52-Week Range | ₹1,364.2 — ₹4,169 |
| Sector | Auto Components |
| Book Value | ₹496.13 |
Strengths
- Strong recent growth: sales +24.71%, profit +44.51%
- Low leverage: Debt/Equity of 0.15
- Decent profitability: ROE of 17.19% and ROCE of 13.38%
- Piotroski F-Score of 7/9 indicates improving fundamentals
- 5-year revenue CAGR of 14.26% shows a decent growth track record
Concerns
- Expensive valuation: P/E of 53.25, P/B of 10.53, and PEG of 1.54
- Negative free cash flow of ₹-580 Cr despite reported profits
- ROCE of 13.38% is moderate relative to the capital needed to support growth
- Very low dividend yield of 0.14% and promoter holding of 30.17% offer limited downside comfort
AI Analysis
At ₹2,528, Sansera may be a good business but not obviously a good investment. In Graham's language, the price demands a lot: P/E of 53.25 and P/B of 10.53, against ROE of 17.19%. That is fine if growth continues, but the 5-year revenue CAGR is 14.26%; recent 24.71% sales growth and 44.51% profit growth are encouraging, yet a PEG of 1.54 suggests the market has already priced much of that. The balance sheet is conservatively built: debt/equity only 0.15. The Piotroski F-score of 7/9 tells me the fundamentals are improving. But the cash flow story worries me: free cash flow is ₹-580 Cr, while the market cap is ₹14,574 Cr. A company can report accounting earnings and consume cash if it is expanding receivables, inventories, or capital expenditure; with ROCE of only 13.38%, any growth capital must earn more than that to create value. The latest quarter's net profit of ₹69 Cr on ₹908 Cr of sales is a 7.6% margin, decent but not a fortress. Promoter holding of 30.17% is not low enough to ignore, but it is not a controlling-insider hallmark either. Dividend yield is negligible at 0.14%, so shareholders depend entirely on capital gains. I would wait for a margin of safety. Quality exists, but at 53 times earnings, the price must be earned. If free cash flow turns positive while growth remains above 20%, I could reconsider. For now, this is a fast grower at a price that leaves no room for disappointment.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer