Summit Securitie (SUMMITSEC)

FairStock Score: 42/100 — MIXED

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

Key Financials

Strengths

• Trades at ₹1,661.50 against book value of ₹4,515.14, a P/B of 0.37, offering a large discount to net assets.
• High promoter holding of 74.65% suggests strong insider alignment, though it limits free float.
• Piotroski F-score of 7/9 indicates reasonably sound financial health.
• P/E of 14.72 is not demanding, and the balance sheet appears to have no reported leverage.
• Latest quarter net profit of ₹17 Cr on ₹22 Cr sales shows the asset base can generate some earnings.

Concerns

• ROE of 1.03% and ROCE of 1.21% show that book value is earning very poor returns — a classic value trap risk.
• Zero dividend yield means investors get no income while waiting for value to be unlocked.
• The 2064% sales growth and 450% profit growth are off a very small base and may be driven by investment gains rather than durable operations.
• FairStock Score of 39/100 is mixed and suggests caution despite the cheap valuation.

AI Analysis

Let me look at Summit Securitie with Graham's eyes. The stock trades at ₹1,661.50 against a book value of ₹4,515.14 per share — that is a P/B of 0.37. In plain words, the market is offering me a rupee of net assets for 37 paise. That is the starting point of any value case. But cheapness alone is not enough. The company earns very little on those assets: ROE is 1.03% and ROCE is 1.21%. A business that cannot generate decent returns on its equity is a poor compounding machine, no matter how large the book value. The reported 2064% sales growth and 450% profit growth look striking, but they are coming off a tiny base — latest quarter sales are only ₹22 Cr and net profit ₹17 Cr. This is not an operating franchise; it looks like an investment holding company whose earnings may swing with market prices. The Piotroski F-score of 7/9 is encouraging and suggests the balance sheet is not distressed. Promoter holding is high at 74.65%, which can be good if it aligns interests, but it also reduces free float. There is zero dividend yield, so shareholders are dependent on management to unlock value. At P/B 0.37 and P/E 14.72, I am paying a modest multiple, but a value investor must ask why the market discounts the book value so heavily. The gap may be due to low return on equity, illiquidity, or a portfolio that is not being monetised. I would not call this a growth story; I would call it an asset play. I need evidence of capital allocation, realisation of underlying investments, or improved return on equity before I get excited.

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