Sumit Woods (SUMIT)

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

Key Financials

Strengths

• Low leverage: debt/equity ratio of 0.33 provides a cushion during project delays.
• Promoter holding of 60.56% aligns management interests with minority shareholders.
• Book value of ₹33.23 gives a tangible asset floor; P/B of 1.59 is not extreme if assets are recoverable.
• ROCE of 11.12% suggests moderate capital efficiency despite the current downturn.
• Price is well below the 52-week high of ₹104.90, indicating a de-rated valuation.

Concerns

• Sales and profits have both cratered more than 61%, showing severe business weakness.
• Latest quarter annualized profit of roughly ₹4 Cr implies a forward P/E near 43x, not the headline 18.2x.
• Piotroski F-score of 3/9 signals weak financial health and potential earnings deterioration.
• No dividend, no disclosed ROE, and insufficient data make it hard to trust the quality of reported earnings.

AI Analysis

Sumit Woods is exactly the kind of business that tests a value investor's patience. A real-estate developer with a market cap of just ₹174 Cr, it has seen sales collapse by 61.62% and profits fall by 61.32%. The latest quarter tells the story: sales of ₹11 Cr and a net profit of only ₹1 Cr. If that quarterly profit is annualized, the stock is trading at roughly 43 times current earnings, not the 18.2 times the trailing P/E suggests. That is not a margin of safety; that is a hope premium. The Piotroski F-score of 3/9 is an alarm bell. This is a business consuming value, not creating it. Debt-to-equity of 0.33 is manageable, and ROCE of 11.12% is respectable, but with no disclosed ROE, no dividend, and a book value of ₹33.23, I am paying 1.59 times book for a company whose earning power has shrunk dramatically. Promoter holding of 60.56% is positive, but even committed owners cannot override weak demand and lumpy project cycles. Graham taught me to buy with a margin of safety. Here, the safety is thin. The 52-week range of ₹31.74 to ₹104.90 shows how volatile this stock can be. At ₹52.93, you are closer to the low, but that alone does not make it cheap. Real estate is a cyclical business, and this looks like a cyclical caught in a downturn. I need evidence of recovery, not just a low P/E. Until sales, profits, and cash flows stabilise, I will patiently wait.

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