Sustainable Ener (SEITINVIT)

FairStock Score: 10/100 — RISKY

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

Key Financials

Strengths

• Sales growth of 3.81% shows some top-line resilience in a defensive power generation segment
• Latest quarter revenue of ₹172 crore indicates the operating asset base is still generating meaningful sales
• Dividend yield of 6.61% offers apparent income, if the payout can be sustained

Concerns

• Profit growth is deeply negative at -23.46%, while the P/E is 32.61 and PEG is 8.56, making the valuation hard to justify
• ROCE is only 5.91%, indicating weak capital efficiency and absence of a durable competitive advantage
• Dividend yield of 6.61% looks potentially uncovered by earnings, given market cap and P/E imply net profit of roughly ₹124 crore
• Missing balance-sheet data such as book value, ROE, debt/equity and promoter holding, along with FairStock Score of 9/100, adds significant uncertainty

AI Analysis

At ₹125, Sustainable Ener carries a market cap of ₹4,050 crore and a P/E of 32.6. For that price, I need a business with pricing power and dependable growth. Instead, I see sales growth of only 3.81% and profit down 23.46%. A PEG of 8.56 tells me I am paying an enormous multiple for very little future earnings expansion. The latest quarter's ₹172 crore sales and ₹22 crore net profit annualize to roughly ₹88 crore, making the stock look even more expensive than the trailing multiple suggests. ROCE of 5.91% is weak. A business earning less than 6% on capital has no economic moat. The high dividend yield of 6.61% is attractive only if earnings cover it. Given net profit is far below the implied dividend, that payout looks unsustainable. Piotroski F-Score of 4/9 confirms poor financial health. The missing book value, ROE, debt/equity and promoter holding data make it impossible to assess balance-sheet strength. FairStock Score of 9/100 reinforces the risk. This is not a wonderful business at a fair price. It is a mediocre business at a demanding price. Graham reminded us that price is what you pay, value is what you get. Here, the value in front of me is declining profits, weak returns on capital, and an uncovered dividend. I would wait for a much lower price or clear evidence of margin recovery and stable distributions before considering it.

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