Sunlite Recycli. (SUNLITE)

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

Key Financials

Strengths

• Sales growth of 76.24% and profit growth of 103.12% show strong operating momentum
• ROCE of 36.07% indicates efficient use of capital
• Piotroski F-Score of 7/9 suggests solid recent financial health
• Promoter holding of 74.47% aligns interests and implies long-term commitment
• PEG of 0.25 suggests the growth is not fully priced if sustained

Concerns

• Latest quarter net margin is razor thin: ₹14 Cr profit on ₹1,122 Cr sales (~1.25%)
• Zero dividend yield means returns depend entirely on growth and market re-rating
• Debt/Equity and Book Value are not disclosed, leaving financial risk partly hidden
• Stock at ₹495.45 is closer to the 52-week high of ₹583.55, leaving limited margin of safety

AI Analysis

Looking at Sunlite Recycli, I see a fast-growing processor in a commodity arena—aluminium, copper and zinc products. The growth numbers are eye-catching: sales up 76.24% and profit up 103.12%, with a trailing P/E of 22.04. The PEG ratio of 0.25 suggests that if this growth continues, Mr. Market is not asking a crazy price. ROCE of 36.07% is genuinely strong, and a Piotroski F-score of 7 out of 9 tells me the recent improvement is not just accounting noise. Promoter holding of 74.47% also aligns owners with public shareholders. But Graham would want me to look at the margin of safety. In the latest quarter, the company did ₹1,122 crore of sales but net profit was only ₹14 crore. That's a margin of about 1.25%. A business that earns a thin spread on commodity products can see profits swing violently when input costs or selling prices move. There is no dividend yield, so the investor's return depends entirely on growth and the multiple being paid. With the stock at ₹495.45, near the upper end of its 52-week range of ₹292.25 to ₹583.55, much optimism is already reflected. I also cannot see book value, return on equity, or debt/equity in the data. In a capital-intensive recycling business, leverage matters. By not knowing the debt load, I cannot estimate the real financial risk. The F-score is good, but 7/9 is not a clean bill of health. This is a fast grower, not a stalwart. I would only want to own it at a price that leaves room for error, and I would insist on watching quarterly margins and debt levels closely. If the growth is real, it deserves attention; if commodity prices reverse, today's buyer could be hurting.

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