⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SAMMAANCAP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | SAMMAANCAP | Market Cap | 11,865 Cr. | Current Price | 143 ₹ | High / Low | 193 ₹ |
| Stock P/E | 10.3 | Book Value | 281 ₹ | Dividend Yield | 0.00 % | ROCE | 9.12 % |
| ROE | 4.63 % | Face Value | 2.00 ₹ | DMA 50 | 147 ₹ | DMA 200 | 145 ₹ |
| Chg in FII Hold | 5.89 % | Chg in DII Hold | -2.52 % | PAT Qtr | 275 Cr. | PAT Prev Qtr | 297 Cr. |
| RSI | 47.9 | MACD | -0.93 | Volume | 64,50,073 | Avg Vol 1Wk | 2,13,98,663 |
| Low price | 97.6 ₹ | High price | 193 ₹ | PEG Ratio | 0.96 | Debt to equity | 1.85 |
| 52w Index | 47.5 % | Qtr Profit Var | 149 % | EPS | 14.3 ₹ | Industry PE | 16.7 |
📊 Core Financials
- Quarterly PAT declined to 275 Cr from 297 Cr, showing slight weakness in earnings momentum.
- ROE at 4.63% and ROCE at 9.12% are modest, reflecting limited efficiency in capital utilization.
- Debt-to-equity ratio at 1.85 indicates high leverage, which could pressure cash flows.
- EPS at 14.3 ₹ provides a reasonable earnings base, but profitability remains thin.
💹 Valuation Indicators
- P/E ratio: 10.3, lower than industry average of 16.7, suggesting undervaluation.
- P/B ratio: ~0.51 (143 ₹ / 281 ₹ book value), indicating the stock trades below book value.
- PEG ratio: 0.96, close to fair valuation relative to growth.
- Intrinsic value appears higher than current price, offering margin of safety.
🏢 Business Model & Competitive Advantage
- Sammaan Capital operates in financial services, focusing on lending and investment activities.
- Competitive advantage lies in niche positioning and potential growth in credit demand.
- High leverage and modest returns limit its overall strength compared to peers.
📈 Entry Zone & Long-Term Guidance
- Entry zone: 135–145 ₹ range (near 200 DMA support at 145 ₹).
- Long-term holding viable for value investors seeking undervalued financial stocks.
- Accumulation should be cautious due to high debt levels and weak profitability metrics.
Positive
- Stock trades below book value (P/B ~0.51).
- Low P/E (10.3) compared to industry average (16.7), suggesting undervaluation.
- FII holdings increased (+5.89%), showing foreign investor confidence.
Limitation
- High debt-to-equity ratio (1.85), raising financial risk.
- Low ROE (4.63%) and ROCE (9.12%), indicating weak capital efficiency.
- No dividend yield, limiting income returns for investors.
Company Negative News
- Quarterly PAT declined sequentially (275 Cr vs 297 Cr).
- DII holdings decreased (-2.52%), showing reduced domestic institutional support.
Company Positive News
- FII holdings increased significantly (+5.89%), reflecting foreign confidence.
- Stock trading near 200 DMA (145 ₹), providing technical support.
Industry
- Industry PE at 16.7, higher than Sammaan Capital’s 10.3, highlighting undervaluation.
- Financial services sector expected to grow steadily with rising credit demand in India.
Conclusion
- Sammaan Capital is undervalued relative to peers, trading below book value and industry PE.
- High debt and weak profitability metrics remain concerns.
- Accumulation near 135–145 ₹ is attractive for value investors, but long-term holding requires monitoring of leverage and earnings growth.
I can also extend this into a peer comparison with other mid-cap financial service companies to highlight relative valuation and risk factors if you’d like.