Service Care Ltd (SERVICE)

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

Key Financials

Strengths

• Promoter holding of 65.35% aligns management interests with minority shareholders.
• Piotroski F-Score of 6/9 indicates reasonable basic financial health and no immediate distress signal.
• Profit growth of 6.01% despite negative sales growth suggests some margin discipline or cost control.
• Latest quarter is profitable with ₹2 Cr net profit on ₹92 Cr sales, indicating the business is currently operational and cash-generating at a basic level.

Concerns

• P/E of 32.24 and PEG of 5.36 leave no margin of safety for a low-growth, low-return business.
• ROCE of just 5.12% is well below what a value investor would require and points to weak capital efficiency.
• Sales growth is negative at -1.65%, and the company pays no dividend, offering neither top-line expansion nor income.
• Missing book value, ROE, and debt/equity data makes a Graham-style balance-sheet safety check impossible.

AI Analysis

At first glance, Service Care Ltd looks like exactly the kind of business Graham would tell me to avoid. The market cap is only ₹69 Cr and the price is ₹54.50, but a P/E of 32.24 means I am paying more than thirty-two times earnings for a company whose sales fell 1.65% last year. The latest quarter shows sales of ₹92 Cr and a net profit of ₹2 Cr—that is a razor-thin margin. ROCE of only 5.12% tells me the company is not generating an acceptable return on capital. With no dividend, my return depends entirely on future price appreciation, and a PEG ratio of 5.36 says the current earnings growth of 6.01% does not justify the multiple. In Graham's framework, price is what you pay; value is what you get. Here I see little value protection. The promoter holding of 65.35% is reassuring, though, because it aligns management with minority shareholders, and a Piotroski F-score of 6/9 suggests the company is not in immediate financial distress. But I cannot ignore the missing data: no book value, no ROE, no debt-to-equity ratio. I will not invest in what I cannot measure. This appears to be a slow grower—or perhaps a no-grower—in a competitive commercial-services space. There is no moat, no pricing power, and shrinking sales. The 52-week range of ₹39.20 to ₹63.75 shows how uncertain the market is about this business. At ₹54.50, close to the middle of that range, the risk-reward is poor. I would need a much cheaper price, or evidence of durable improvement in returns and revenue, before considering this stock.

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