Sattva Eng. (SATTVAENGG)

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

Key Financials

Strengths

• Sales growth of 105.23% and profit growth of 138.10% show exceptional momentum.
• P/E of 7.24 and PEG of 0.06 suggest attractive valuation relative to growth.
• ROCE of 28.63% indicates efficient use of capital in the business.
• Promoter holding of 62.91% aligns management interests with minority shareholders.
• Piotroski F-Score of 7/9 points to solid profitability and financial health.

Concerns

• No dividend yield; investors rely entirely on capital appreciation.
• Book value, ROE, and Debt/Equity are unavailable, so balance sheet risk is unclear.
• Latest quarter net margin is roughly 10% — respectable, but sustainability of such growth is unproven.
• Small market cap of ₹84 Cr and wide 52-week range of ₹43.50–₹88.00 indicate volatility and potential liquidity risk.

AI Analysis

At ₹71.95, Sattva Engineering is a tiny ₹84 crore player in water supply and management. The price-to-earnings ratio of 7.24 is cheap only if the recent explosion in earnings is durable. Sales up 105.23% and profit up 138.10% look extraordinary, and a PEG of 0.06 screams growth at a bargain price. But Graham taught me to treat such figures with suspicion until the balance sheet proves them. ROCE at 28.63% is excellent, promoter holding at 62.91% aligns interests, and a Piotroski score of 7 out of 9 signals solid financial health based on available numbers. Yet I cannot fully apply my circle of competence: book value, ROE, and debt-to-equity are unavailable, and no dividend means the only return is the business itself. The latest quarter—₹51 crore sales and ₹5 crore profit—implies a net margin of about 10%, respectable, but one quarter does not make a franchise. Water supply and management is a necessary, largely government-linked business, but at ₹84 crore market cap there is little evidence of a wide moat. High growth with low P/E can be a value trap if the growth fades or working capital swallows cash. I would need to see multi-year consistent numbers, order book visibility, and a clean balance sheet before taking a meaningful position. At this price, it is an interesting small-cap fast grower—not a Buffett bedrock.

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