Sungarner Energ. (SEL)

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

Key Financials

Strengths

• Sales growth of 115.61% with latest quarter sales of ₹25 Cr against a ₹42 Cr market cap indicates strong demand traction.
• ROCE of 17.99% suggests management is generating decent returns on capital employed.
• Piotroski F-Score of 7/9 points to sound overall fundamental health across profitability, leverage, and efficiency.
• Promoter holding of 62% aligns management with minority shareholders.
• Small market cap leaves room for significant upside if growth converts into profits.

Concerns

• Profit growth of only 15.91% is far below sales growth, and latest quarter net profit margin is roughly 4%, showing margin compression.
• Missing ROE, book value, and debt-to-equity data makes it difficult to assess intrinsic value or financial leverage.
• P/E of 22.44 with zero dividend means investors depend entirely on uncertain future profit growth.
• 52-week range of ₹29.95 to ₹285.50 highlights extreme volatility and speculative retail interest.

AI Analysis

At ₹180, Sungarner Energ is a ₹42 crore market cap company in the electrical equipment space. The first thing that stands out is the headline sales growth of 115.61%, with the latest quarter showing sales of ₹25 crore. But my old friend, net profit, is only ₹1 crore in that quarter, and annual profit growth is 15.91%. That gap is the classic sign of a company chasing revenue without pricing power or margin discipline. I cannot find book value, ROE, or debt-to-equity, which makes me uncomfortable, because Buffett demands that you know what you are buying. A 17.99% ROCE is respectable, and a Piotroski score of 7/9 hints that the balance sheet has not deteriorated, but respectability is not a moat. Promoter holding of 62% is good, but minority investors still face extreme volatility – the stock has swung between ₹29.95 and ₹285.50 in a year. At a P/E of 22.44, I am paying a twenty-two times multiple for a business whose profit growth is only 16%. The PEG ratio of 0.34 looks tempting, but it relies on growth continuing at a far faster rate than recent profit conversion. There is no dividend, so my only return depends on the business redeploying capital profitably. With sales growing 115% but profits only 16%, I do not see evidence of a durable competitive advantage. This is a fast-growing small-cap, not a predictable compounder. I would need to see consistent margin expansion, better disclosures, and proof that this growth is profitable before I would part with my capital.

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