Smarten Power (SMARTEN)

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

Key Financials

Strengths

• P/E of 8.94 is inexpensive relative to trailing earnings
• ROCE of 41.01% suggests strong efficiency in capital use
• Promoter holding of 67.10% aligns management with minority shareholders
• Positive sales growth of 6.52% and latest quarter sales of ₹115 Cr show an operating business

Concerns

• Profit growth declined 1.84% while sales growth is only 6.52%
• Piotroski F-Score of 4/9 points to below-average financial health
• No dividend yield and missing book value/debt-equity data limit any margin-of-safety assessment
• PEG of 1.37 suggests the stock is not clearly cheap relative to growth

AI Analysis

I approach Smarten Power with caution. A price-to-earnings ratio of 8.94 looks cheap at first glance, and a return on capital employed of 41.01% is genuinely impressive. But cheapness must be backed by financial strength. Here, I see gaps: book value is not available, debt-to-equity is not available, and the Piotroski F-score is only 4 out of 9, which warns of mediocre fundamentals. The company grew sales just 6.52% while profit actually fell 1.84%. That is not the compounding machine I look for. The latest quarter shows sales of ₹115 crore and net profit of ₹6 crore, but I need many more quarters to judge sustainability. With zero dividend yield, I receive no cash while I wait. The 67.10% promoter holding is positive, as owners have skin in the game, but high promoter holdings also mean limited free float and potential low liquidity. On valuation, PEG of 1.37 tells me the P/E is not obviously justified by growth. Graham would demand a margin of safety; with missing book value and debt data, I cannot calculate that margin. Smarten Power appears to be a small, moderately growing electrical equipment business with excellent capital efficiency but an inconsistent earnings trend. I would not be a buyer today. I need proof of debt comfort, stable profit growth, and a visible moat before committing capital. The price has ranged between ₹42 and ₹74.15; at ₹59.50, I am not being compensated enough for the unknowns. This is a slow grower at best, not a stalwart.

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