SAPPHIRE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.4
| Stock Code | SAPPHIRE | Market Cap | 6,608 Cr. | Current Price | 206 ₹ | High / Low | 368 ₹ |
| Book Value | 38.3 ₹ | Dividend Yield | 0.00 % | ROCE | 2.98 % | ROE | -2.01 % |
| Face Value | 2.00 ₹ | DMA 50 | 183 ₹ | DMA 200 | 235 ₹ | Chg in FII Hold | -0.24 % |
| Chg in DII Hold | -0.05 % | PAT Qtr | -4.55 Cr. | PAT Prev Qtr | 0.22 Cr. | RSI | 69.2 |
| MACD | 4.66 | Volume | 1,00,40,822 | Avg Vol 1Wk | 1,37,65,432 | Low price | 140 ₹ |
| High price | 368 ₹ | Debt to equity | 1.08 | 52w Index | 28.8 % | Qtr Profit Var | -2,168 % |
| EPS | -1.51 ₹ | Industry PE | 67.3 |
📊 SAPPHIRE shows weak fundamentals with negative ROE (-2.01%) and very low ROCE (2.98%), reflecting poor efficiency and profitability. The company is highly leveraged (Debt-to-equity: 1.08), adding financial risk. EPS is negative (-₹1.51), and quarterly PAT slipped into losses (-₹4.55 Cr. vs ₹0.22 Cr. previous quarter). Valuation is unattractive as the company has no meaningful P/E due to losses, while the industry PE stands at 67.3. Current price ₹206 is above its 50 DMA (₹183) but below 200 DMA (₹235), suggesting short-term momentum but weak long-term fundamentals. Entry zone is ideal near ₹170–185 for traders only, while long-term investors should avoid until profitability stabilizes.
💡 Holding strategy: Short horizon (1–2 years) is advisable if price sustains above ₹200 with exit near ₹220–230. Long-term holding is not recommended unless earnings turn positive and ROE improves.
Positive
- 📈 Strong trading volumes (1 Cr.+) indicate active market participation.
- 💰 Debt-to-equity ratio of 1.08 is high but manageable.
- 📊 RSI at 69.2 and MACD positive (4.66), showing short-term bullish momentum.
Limitation
- ⚠️ ROCE at 2.98% and ROE at -2.01% are very weak for long-term compounding.
- 📉 Dividend yield of 0.00% offers no passive income.
- 📊 EPS of -₹1.51 reflects negative profitability.
Company Negative News
- 📉 PAT declined from ₹0.22 Cr. to -₹4.55 Cr., showing losses.
- 📊 FII holding decreased (-0.24%) and DII holding decreased (-0.05%), reflecting reduced institutional confidence.
Company Positive News
- 📈 Technicals show momentum with RSI near 70 and MACD positive.
- 📊 Stock has rebounded from its low of ₹140, showing resilience in price action.
Industry
- 🏭 Industry PE at 67.3 is high, but SAPPHIRE has no meaningful P/E due to losses.
- 📉 Quick-service restaurant sector is cyclical, tied to consumer demand and discretionary spending.
Conclusion
⚖️ SAPPHIRE is not a strong candidate for long-term investment due to negative ROE and weak profitability. Ideal entry is near ₹170–185 for short-term traders. Long-term investors should avoid unless earnings turn positive. Exit near ₹220–230 or on further deterioration of financial metrics.
This structured HTML report captures SAPPHIRE’s weak fundamentals, valuation risks, and sector context with clear entry/exit guidance. Would you like me to extend this by benchmarking SAPPHIRE against peers such as Jubilant FoodWorks, Devyani International, or Burger King India to highlight stronger alternatives in the QSR sector?