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SAMMAANCAP - Fundamental Analysis: Financial Health & Valuation

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Rating: 2.8

Last Updated Time : 04 May 26, 11:42 am

Fundamental Rating: 2.8

Stock Code SAMMAANCAP Market Cap 16,756 Cr. Current Price 145 ₹ High / Low 193 ₹
Stock P/E 14.6 Book Value 281 ₹ Dividend Yield 0.00 % ROCE 9.12 %
ROE 4.63 % Face Value 2.00 ₹ DMA 50 147 ₹ DMA 200 146 ₹
Chg in FII Hold 21.3 % Chg in DII Hold -2.23 % PAT Qtr 285 Cr. PAT Prev Qtr 275 Cr.
RSI 46.3 MACD -0.79 Volume 3,56,40,051 Avg Vol 1Wk 2,26,70,894
Low price 111 ₹ High price 193 ₹ PEG Ratio 1.35 Debt to equity 1.85
52w Index 41.3 % Qtr Profit Var 1.01 % EPS 13.9 ₹ Industry PE 15.1

📊 SAMMAANCAP reflects weak fundamentals with low ROE (4.63%) and ROCE (9.12%), indicating poor efficiency in generating returns. Despite fair valuation (P/E 14.6 vs industry 15.1), high leverage (Debt-to-equity: 1.85) adds financial risk. EPS of ₹13.9 provides earnings visibility, but dividend yield is 0.00%, limiting passive income. Current price ₹145 is near its 50 DMA (₹147), making ₹135–140 an ideal entry zone for cautious investors.

💡 Long-term holding is risky unless profitability improves significantly. Exit strategy: partial profit booking near ₹165–170 or full exit if ROE remains below 5% or debt worsens.

Positive

  • 📈 PAT growth of 1.01% QoQ shows earnings stability.
  • 💰 EPS of ₹13.9 supports visibility in earnings.
  • 📊 FII holding increased significantly (+21.3%), showing strong foreign investor interest.

Limitation

  • ⚠️ ROCE at 9.12% and ROE at 4.63% are weak for compounding.
  • 📉 Dividend yield of 0.00% offers no passive income.
  • 📊 High leverage (Debt-to-equity: 1.85) increases financial risk.

Company Negative News

  • 📉 DII holding decreased (-2.23%), showing reduced domestic institutional confidence.
  • 📊 Technical weakness: MACD negative (-0.79), signaling short-term pressure.

Company Positive News

  • 📈 Stable PAT growth from ₹275 Cr. to ₹285 Cr. indicates resilience.
  • 📊 Strong FII inflows (+21.3%) highlight foreign investor confidence.

Industry

  • 🏦 Industry PE at 15.1 is close to SAMMAANCAP’s 14.6, suggesting fair valuation.
  • 📉 Financial services sector is cyclical, tied to credit demand and interest rate cycles.

Conclusion

⚖️ SAMMAANCAP is fairly valued but weak in profitability metrics, making it a cautious candidate for long-term investment. Ideal entry is near ₹135–140. Long-term investors should monitor ROE and ROCE closely. Exit near ₹165–170 or on deterioration of earnings and leverage metrics.

This structured HTML report captures SAMMAANCAP’s fundamentals, valuation risks, and sector context with clear entry/exit guidance. Would you like me to extend this by benchmarking SAMMAANCAP against peers such as Bajaj Finance, Muthoot Finance, or Cholamandalam Finance to highlight stronger alternatives in the financial services sector?

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