Sejal Glass (SEJALLTD)

FairStock Score: 43/100 — MIXED

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

Key Financials

Strengths

• Sales growth of 63.63% and profit growth of 48.66% show strong demand and operating momentum.
• PEG ratio of 0.54 suggests the high P/E may be justified if growth continues.
• Piotroski F-score of 7/9 indicates solid recent fundamentals across profitability, leverage, and efficiency.
• Promoter holding of 75% aligns promoter interests with minority shareholders.

Concerns

• P/E of 30.14 and P/B of 27.72 are rich relative to ROE of 7.66% and book value of ₹26.34.
• Debt/Equity of 4.06 is very high, raising financial risk if growth slows or interest costs rise.
• No dividend and a thin net margin of roughly 5% leave little earnings cushion.
• Wide 52-week range of ₹381.00 to ₹1036.70 highlights volatility and possible cyclicality.

AI Analysis

Sejal Glass presents a paradox. On one hand, 63.63% sales growth and 48.66% profit growth are eye-catching; the latest quarter, with sales of ₹101 Cr and net profit of ₹5 Cr, shows momentum. On the other hand, this is not a business I would call a simple compounding machine. The balance sheet carries a debt/equity of 4.06, leverage that demands caution, especially in a cyclical industrial-glass segment. Return on equity is just 7.66% and book value only ₹26.34, yet the market pays ₹730.15 per share. That is a price-to-book of 27.72. I cannot call that a margin of safety. The P/E of 30.14 is not cheap in absolute terms, though the PEG ratio of 0.54 indicates the market is pricing in continued rapid growth. The Piotroski F-score of 7/9 hints at improving fundamentals, and promoter holding of 75% is at least aligned with minority shareholders. No dividend means value must come entirely from price appreciation and reinvestment. I would not dismiss it entirely. High growth, high leverage, and high valuation are a delicate cocktail. A debt/equity above 4 makes the company vulnerable to any slowdown or a rise in interest costs. Also, the net profit margin appears only around 5% — modest for a stock trading at 30 times earnings. If growth falters or working capital strains debt, the downside could be sharp. This looks like a fast grower for now, but one where the numbers demand more than hope. I would watch debt and cash conversion closely. In Graham's language, the price is far above tangible book; this is a bet on future earnings, not on assets.

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