SAMMAANCAP - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.1

📊 Core Financials Assessment

Profitability

ROE at 4.63% and ROCE at 9.12% are below average, indicating weak capital efficiency.

EPS of ₹12.5 is modest, but consistent with its low P/E ratio.

PAT growth is stable (₹297 Cr vs ₹294 Cr), showing steady performance.

Debt & Liquidity

Debt-to-equity ratio of 1.77 is high, which raises concerns about leverage and interest burden.

Dividend yield of 1.44% adds some income appeal.

Cash Flow & Stability

No major quarterly volatility (Profit Var: 15.9%) — a sign of operational consistency.

Book Value of ₹275 vs Current Price ₹139 implies deep value (P/B ~0.5), suggesting undervaluation.

📉 Valuation Metrics

Metric Value Insight

P/E Ratio 11.7 Attractive vs industry PE of 19.9

P/B Ratio ~0.5 Deep value territory

PEG Ratio 1.09 Fairly valued based on growth

Intrinsic Value ~₹160–₹180 Estimated above current price

The stock appears undervalued, especially on P/B and P/E metrics.

🏢 Business Model & Competitive Edge

Sector: Sammaan Capital operates in financial services, likely focused on asset management, lending, or investment advisory.

Strengths

Strong book value

Low valuation multiples

High trading volume and positive MACD momentum

Risks

High debt

Weak return ratios

Minimal institutional interest (FII -0.29%, DII +0.04%)

The company may be in a turnaround or deep-value phase, but lacks strong profitability metrics.

📌 Entry Zone Recommendation

Suggested Entry Range: ₹125–₹135

Near 50 DMA (₹129) and 200 DMA (₹132)

RSI at 64.8 suggests mild overbought conditions

MACD positive, indicating bullish momentum

🧭 Long-Term Holding Guidance

Accumulation Strategy: Gradual entry near support zones could offer upside if debt is managed and ROE improves.

Hold if Value-Oriented: Suitable for contrarian investors seeking undervalued plays.

Watchlist Triggers

Debt reduction

ROE/ROCE improvement

Institutional buying

Sammaan Capital looks like a classic value stock with potential upside if fundamentals improve. Let me know if you'd like a technical chart or peer comparison to sharpen the view.

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