Sapphire Foods (SAPPHIRE)

FairStock Score: 18/100 — RISKY

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

Key Financials

AI Analysis

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

Let me begin with the first principle: never lose money. Sapphire Foods looks like a business I would not bet on at this price. The restaurant business can be wonderful, but this particular operation is currently earning nothing. Sales grew 8.64% to ₹814 Cr in the latest quarter, yet net profit was minus ₹5 Cr, and annual profit growth is down 78.14%. ROE is -1.26% and ROCE is only 5.76%, so managers are not generating adequate returns on the capital employed. The balance sheet has debt/equity of 0.92, which is tolerable in good times, but not comfortable when profits are negative. Altman Z-Score of 3.24 says bankruptcy risk is low today, and FCF of ₹171 Cr is a bright spot. Piotroski F-Score of 6/9 also suggests no immediate distress. But a good business scorecard does not make a good investment if the price is insane. At ₹173.45, market cap is ₹6,566 Cr, or roughly 38 times free cash flow. P/B is 3.99 against a book value of ₹43.50; EV/EBITDA is an extraordinary 153.88. The DCF value shown is ₹1.29, leaving no margin of safety. Promoter holding is just 26.07%—I want owners who eat their own cooking. There is no dividend to compensate while waiting. The stock has fallen from ₹347.90 to ₹173.45, and FairStock Score is 15/100, which is labelled RISKY. Falling prices are not automatically cheap; a good business at the wrong price can still be a bad investment. This is a possible turnaround, but I need evidence of margin recovery, sustained positive earnings, and deleveraging before investing. For now, I will watch, not buy.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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