Saroja Pharma In (SAROJA)

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

Key Financials

Strengths

• Exceptional sales growth of 106.28% and profit growth of 67.65%
• Low P/E of 10.59 and PEG of 0.12 suggest inexpensive relative to growth
• Promoter holding of 73.02% gives strong owner alignment
• Piotroski F-Score of 7/9 indicates decent financial health
• ROCE of 12.57% shows reasonable capital efficiency

Concerns

• Extremely small market cap of ₹13 crore creates liquidity and volatility risks
• Latest quarter net margin is thin: ₹39 crore sales yielded only ₹1 crore profit
• Book value, ROE, and debt/equity are unavailable, limiting margin-of-safety analysis
• No dividend and price is 43% below 52-week high, indicating market skepticism

AI Analysis

When I look at Saroja Pharma, I first see a micro-cap specialty chemicals company trading at ₹34.05 with a market cap of just ₹13 crore. At 10.59 times earnings, with sales growth of 106% and profit growth of 67.65%, the numbers immediately grab my attention. But Benjamin Graham taught me to weigh facts, not hopes. The PEG ratio of 0.12 suggests the market is pricing in very little of that growth, which can be either a great opportunity or a value trap. The latest quarter shows ₹39 crore in sales but only ₹1 crore in net profit — a razor-thin margin. That tells me this is a low-margin, competitive business, and the 'specialty chemicals' label alone does not create a moat. Promoter holding at 73.02% is reassuring; the owners are aligned with public shareholders. The Piotroski F-score of 7 out of 9 also points to reasonable fundamental health. ROCE of 12.57% is respectable, though not exceptional. However, I cannot compute my usual margin of safety because book value, ROE, and debt-to-equity are all unavailable. That is a red flag for a Graham-style investor. The stock trades 43% below its 52-week high of ₹60, which shows Mr. Market has already cooled on this business. There is no dividend, so my return depends entirely on future earnings and the market's mood. This is not a stalwart. It is a fast grower with value-like multiples, but size, thin margins, and missing data make it a small, speculative position at best. I would watch it closely, demand a longer track record, and only invest money I can afford to wait with.

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