S D Retail (SDREAMS)

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

Key Financials

Strengths

• High promoter holding of 65.29% aligns management with minority shareholders.
• Piotroski F-Score of 7/9 indicates decent fundamental health.
• Profit growth of 124.53% with a trailing P/E of 17.26 gives an optically low PEG of 0.26.
• Sales growth of 9.24% shows steady top-line expansion.
• ROCE of 12.21% is respectable for a small-cap apparel player.

Concerns

• Latest quarter net profit of ₹0 Cr raises serious questions about earnings sustainability and seasonality.
• No book value, debt/equity, or ROE data is available, making a Graham-style margin-of-safety assessment impossible.
• Garments and apparels is a highly competitive, low-moat industry with fashion and discretionary demand risk.
• No dividend yield; total return depends entirely on uncertain capital appreciation.
• At ₹102, the stock is near the ₹108.05 upper end of its 52-week range, leaving limited margin of safety.

AI Analysis

Let me start with what I know: this is a small garment and apparel player with a market cap of just ₹159 Cr, selling at a P/E of 17.26. That is not an expensive price, but cheapness is not enough. In Graham's framework, I need a margin of safety, and that requires understanding the balance sheet and the earning power. Unfortunately, I don't have book value, debt-to-equity, or ROE. That is a red flag. A captain who gives me revenue and profit but hides the hull prevents me from calling it seaworthy. The positives are real: promoter holding of 65.29% gives owner alignment, the Piotroski F-Score of 7/9 points to sound fundamentals, and ROCE of 12.21% is respectable though not stellar. Sales growth of 9.24% is steady, and profit growth of 124.53% is striking. A PEG of 0.26 suggests the market is not paying full value for that growth—if it is sustainable. But the latest quarter shows net profit of ₹0 Cr. That is the loudest number on the page. In a seasonal apparel business, one weak quarter can happen, but it reminds me that reported annual growth can be lumpy and low-base arithmetic can deceive. The price is near the top of the 52-week range at ₹102, close to ₹108, leaving little room for error. There is no dividend yield, so the story depends entirely on future growth. This is not a Buffett-style certainty; it is a high-uncertainty small-cap with some attractive growth signals. I would need at least three years of audited financials, cash flow details, and a clear balance sheet before I commit. For now, it is a show-me story, not a buy.

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