Suratwwala Busi. (SBGLP)

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

Key Financials

Strengths

• Promoter holding at 73.39% aligns ownership interests with minority shareholders.
• ROE of 42.54% and Piotroski F-Score of 7/9 show strong recent capital efficiency and financial health.
• Latest quarter net margin is solid at roughly 26% (₹11 crore profit on ₹42 crore sales), indicating current profitability.
• P/E of 16.43 with 1,000% profit growth produces a very low PEG of 0.01, though past growth is not permanent.

Concerns

• Revenue base is tiny at ₹42 crore in the latest quarter, so headline growth of 1,223.58% is misleading.
• P/B of 7.80 means paying ₹27.08 for just ₹3.47 of book value, offering little margin of safety.
• ROCE of 12.43% is far below ROE of 42.54%, suggesting leverage, not a durable moat, drives returns.
• As a real estate developer, the business is cyclical; with D/E of 0.74 and dividend yield of only 0.34%, downside support is weak.

AI Analysis

Let me look at this. A 1,223.58% sales growth and 1,000% profit growth would cause euphoria on Dalal Street, but I learned long ago that a donkey that talks for one day is still a donkey. Suratwwala Busi has a quarterly revenue of just ₹42 crore and a net profit of ₹11 crore. That is a tiny base, and percentage growth from a small number can mislead you. The balance sheet is not terrible: debt/equity is 0.74 and the Piotroski score of 7/9 suggests recent financial health. A promoter holding of 73.39% is a genuine positive; owners and minority shareholders are aligned. ROE of 42.54% grabs the headline, but ROCE of only 12.43% tells me much of that return is manufactured by leverage and a narrow book value of ₹3.47. Paying ₹27.08, or 7.8 times book, leaves little room for error. A cyclical real estate developer with D/E of 0.74 and negligible dividend yield of 0.34% is not a compounder I can sleep on. The P/E of 16.43 looks reasonable, and the PEG of 0.01 is almost a joke; an earnings growth rate of 1,000% cannot be projected forward. I prefer the certainty of a durable franchise, not bursting quarterly numbers. FairStock scores it 60/100, 'steady', but high growth with high leverage in a cyclical business is not 'steady' in my vocabulary. If execution continues, this could be a fast grower; if credit tightens or demand slows, the trap door opens. I would need a much larger margin of safety.

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