Sunrest Lifescie (SUNREST)

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

Key Financials

Strengths

• Low headline valuation: P/E of 10.91 with market cap of only ₹19 Cr.
• Strong top-line momentum: sales growth of 120.99%.
• Promoter holding of 53.50% aligns management with minority shareholders.
• Latest quarter is profitable: ₹34 Cr sales with ₹1 Cr net profit.
• Stock trades near the lower end of its 52-week range, offering a potential margin of safety if fundamentals stabilize.

Concerns

• Profit growth fell 41.38% despite sales growth of 120.99%, indicating severe margin compression.
• ROCE of 0.00% and Piotroski F-Score of 3/9 suggest weak capital efficiency and financial fragility.
• Missing book value, ROE, and debt/equity data make balance sheet risk impossible to assess.
• Zero dividend yield provides no income cushion and may signal cash constraints.

AI Analysis

At first glance, Sunrest Lifescie looks like a classic Graham small-cap: market price ₹36.90, market cap only ₹19 Cr, P/E 10.91. But value investing demands more than a low multiple; it demands evidence of durable earning power. Here the evidence is mixed and troubling. Sales have grown 120.99%, yet profit growth is -41.38%. In my experience, when revenue grows but profit falls, the business is buying sales—through price cuts, higher costs, or weak execution. The latest quarter shows ₹34 Cr sales producing just ₹1 Cr net profit, barely a 3% margin. That is a thin buffer against error. I cannot calculate return on equity or debt-to-equity because book value is not available. That itself is a red flag; if management and the exchange do not give me enough data, I cannot value the business. ROCE is 0.00%, and the Piotroski F-Score is a weak 3/9, suggesting poor financial health and possible deterioration. The PEG ratio of 0.09 looks absurdly cheap, but it is based on sales growth, not on true owner earnings. Graham would say: 'Price is what you pay, value is what you get.' Without a reliable stream of profits, the low price may be a value trap. On the positive side, promoter holding of 53.50% is meaningful and aligns owners with minority shareholders. The stock trades near the lower end of its 52-week range (₹29.55 to ₹57.80), and it is profitable in the latest quarter. However, with no dividend and missed fundamentals, this is not yet a compounding machine. I would watch for margin recovery, debt disclosures, positive cash conversion, and consistent profit growth before acting. This is a possible turnaround, not a proven one.

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