Sundrex Oil (SOCL)

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

Key Financials

Strengths

• High sales growth of 66.64% with a trailing P/E of 6.18 suggests undervaluation if growth persists.
• ROCE of 34.76% indicates a capital-efficient business.
• Piotroski F-Score of 7/9 signals sound financial health.
• Promoter holding at 72.01% aligns interests and indicates commitment.
• Latest quarter shows profitability: ₹2 Cr net profit on ₹38 Cr sales.

Concerns

• Profit growth of 20.40% lags sales growth of 66.64%, implying margin pressure.
• Book value, ROE, and debt/equity are unavailable, limiting asset-side margin of safety.
• Zero dividend means minority shareholders rely solely on price appreciation.
• Micro-cap with ₹36 Cr market cap and high promoter holding could lead to low liquidity and volatility.

AI Analysis

At ₹32.05, Sundrex Oil presents an unusual mix: a P/E of just 6.18, a PEG of 0.14, and a return on capital employed of 34.76%. Those are numbers a value hunter loves. Sales grew 66.64%, and the latest quarter shows ₹38 Cr in revenue and ₹2 Cr net profit, roughly a 5% margin. But note the mismatch: sales grew 66.64% while profit grew only 20.40%. That tells me competition or input costs are eating the incremental rupee. Benjamin Graham would ask: where is the book value? The data says unavailable, along with ROE and debt/equity. I cannot calculate a margin of safety from assets, and I never like buying blind. With zero dividend, small shareholder returns depend entirely on capital appreciation and reinvestment. Promoter holding is high at 72.01%, which can be good alignment, but it also reduces public float and liquidity. The Piotroski F-Score of 7 is encouraging; the business is not financially distressed. Yet at a market cap of only ₹36 Cr, this is a micro-cap in a cyclical lubricants industry, where demand is tied to auto and industrial activity. If the growth is real and sustainable, the stock is cheap. If the 66% sales jump is a one-quarter spike or a channel-stuffing event, the picture changes. I want more quarters of evidence, disclosed leverage, and a clearer view of return on equity before I call it a Graham-style bargain. For now, it is a fast grower priced like a cigar butt — but I need more data to be certain.

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