S T C (STCINDIA)
TurnaroundFairStock Score: 34/100 — RISKY
Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹116.7 |
| Market Cap | ₹700.2 Cr |
| P/E Ratio | 1.09 |
| ROCE | 0% |
| ROE | -39.26% |
| Dividend Yield | 0% |
| Profit Growth | 922.2% |
| Debt/Equity | — |
| Sales Growth | 0% |
| Promoter Holding | 90% |
| 52-Week Range | ₹97.04 — ₹150.7 |
| Sector | Commercial Services & Supplies |
| Book Value | ₹-663.49 |
Strengths
- Promoter holding of 90% aligns control with ownership and reduces agency risk.
- P/E of 15.71 is optically low, offering upside if recent profits are repeatable.
- Latest quarter shows a net profit of ₹17 Cr, indicating some earnings power exists even with zero sales.
- Profit growth of 928.57% suggests a favorable base effect, but needs verification.
Concerns
- Book value is deeply negative at ₹-663.49, leaving no asset cushion for shareholders.
- ROE of -39.26% and ROCE of 0.00% show severe capital destruction and poor operational economics.
- Sales are ₹0 Cr in the latest quarter and sales growth is 0.00%, questioning the core trading business.
- No dividend is paid, so shareholders receive no cash return while bearing full business risk.
AI Analysis
Looking at S T C, I feel like I am staring at a cigar butt with no smoke left. A trading company showing ₹0 crore of sales in the latest quarter and a negative book value of ₹-663.49 fails my first test: I cannot put a floor under the assets. The P/E of 15.71 looks modest, and the 928.57% profit growth with a PEG of 0.02 may excite momentum investors, but I learned long ago that a low multiple on volatile earnings is not a bargain. With ROE at -39.26% and ROCE at 0.00%, the business is destroying capital, not compounding it. The latest quarter's ₹17 crore net profit on zero sales makes me question where the profit actually came from; if it is not from the core trading business, it is not sustainable. Promoter holding of 90% is a rare positive, as it aligns owners and managers, but it also leaves a thin float and makes price discovery less reliable. There is no dividend, so the investor depends entirely on capital appreciation. The FairStock Score of 31/100 is consistent with the risks I see: negative net worth, no revenue visibility, and no return on capital. Benjamin Graham would demand earnings stability and a positive tangible book value; this company has neither. I would not call it an investment. It is a speculation on a turn-around, and I prefer the math of a proven business. Watch it, but do not buy it on hope.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer