Sar Televenture (SARTELE)

FairStock Score: 54/100 — MIXED

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

Key Financials

Strengths

• Revenue growth of 106.60% and profit growth of 126.77% show strong momentum
• P/E of 14.89 is reasonable for a fast-growing business, with a very low PEG of 0.13
• Piotroski F-Score of 7/9 suggests decent financial health
• Latest quarter net profit margin of roughly 15% (₹36 Cr on ₹242 Cr sales) shows current profitability

Concerns

• ROCE of only 9.28% indicates modest capital efficiency for an infrastructure business
• No book value, debt/equity, or ROE data disclosed limits balance sheet assessment
• Zero dividend yield means all returns depend on uncertain future price appreciation
• Wide 52-week range of ₹106.95-₹264.85 signals high volatility and possible cyclicality

AI Analysis

I approach Sar Televenture with Graham's caution and Buffett's quality lens. The headline numbers are striking: sales up 106.60% and profit up 126.77%, yet the stock trades at 14.89 times earnings. A PEG of 0.13 screams cheap if the growth is durable. But durability is exactly what I question. Telecom infrastructure is capital-hungry, and while ROCE of 9.28% is positive, it hardly signals a wonderful business. I would look for a much higher return on capital to compensate for the industry's competitive and technological risks. The latest quarter shows ₹242 Cr revenue and ₹36 Cr net profit, a margin near 15%, which is fine, but one quarter is not a decade. The Piotroski F-score of 7/9 gives some comfort on financial health, but I cannot fully assess the balance sheet because book value, debt/equity, and ROE are not available. It bothers me to invest without seeing the liability structure, especially in infrastructure. No dividend means the investor must rely entirely on share price appreciation and growth. Promoter holding of 45.30% aligns owners, but it is not a controlling majority that guarantees governance. At ₹157.55, market cap is ₹998 Cr, so the market already expects substantial future growth. The 52-week range of ₹106.95 to ₹264.85 shows this is not a steady compounder; it is a volatile story. I will not pay up for momentum. If the company can sustain this growth while improving ROCE, the price is acceptable, but I need more evidence and a wider margin of safety.

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