Sat Kartar (SATKARTAR)

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

Key Financials

Strengths

• Strong capital efficiency with ROCE at 39.66%
• Robust profit growth of 103.93% and a PEG of 0.33, indicating the market may be underestimating growth potential
• Piotroski F-score of 7/9 points to solid fundamental health
• Promoter holding of 63.62% aligns management with minority shareholders
• Sales growth of 16.57% shows modest but positive business expansion

Concerns

• Insufficient data on book value, ROE and debt/equity makes financial leverage and asset-based valuation hard to assess
• Low dividend yield of 0.40% offers almost no income cushion
• Stock is near its 52-week high of ₹219.80, leaving limited margin of safety at ₹205
• Profit growth far outpaced sales growth, making sustainability questionable and vulnerable to base effects

AI Analysis

At ₹205, Sat Kartar wears the mask of a small pharma player, but the underlying numbers deserve a Graham-style look. Market cap ₹277 Cr, P/E 20.08. ROCE 39.66% is exceptional; this suggests the business earns strong returns on capital employed. The 103.93% jump in profit is striking, but I never buy for one year's earnings alone. Sales grew only 16.57%, so much of the profit leap must be margin expansion or a low base. With a PEG of 0.33, the market is pricing in sustained fast growth; if growth falters, the arithmetic turns unfavourable. Latest quarter sales ₹88 Cr and net profit ₹8 Cr mean a modest 9% net margin, so it is not a high-margin franchise yet. Piotroski F-score of 7/9 is encouraging and points to a fundamentally sound balance sheet, though the absence of book value, ROE and debt-equity data prevents me from concluding financial strength with confidence. Promoter holding at 63.62% is a positive; owners have skin in the game. Dividend yield of 0.40% is merely a token, so returns must come from growth, not dividends. The stock trades near its 52-week high of ₹219.80, with a low of ₹116.25, leaving little margin of safety. My discipline: rate the business, not the momentum. A 16.57% sales grower with 100% profit growth into a market cap of ₹277 Cr can be a fast grower, but I would demand several more quarters of reliable cash profit and cleaner disclosures before deploying capital. The F-score and ROCE are good starting red flags in the right direction, but capital preservation demands proof.

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