⚠ 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.
SAPPHIRE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | SAPPHIRE | Market Cap | 5,544 Cr. | Current Price | 173 ₹ | High / Low | 368 ₹ |
| Book Value | 38.7 ₹ | Dividend Yield | 0.00 % | ROCE | 5.11 % | ROE | 1.50 % |
| Face Value | 2.00 ₹ | DMA 50 | 203 ₹ | DMA 200 | 255 ₹ | Chg in FII Hold | -2.09 % |
| Chg in DII Hold | 0.29 % | PAT Qtr | 0.22 Cr. | PAT Prev Qtr | -17.3 Cr. | RSI | 34.3 |
| MACD | -12.6 | Volume | 4,80,815 | Avg Vol 1Wk | 15,83,950 | Low price | 154 ₹ |
| High price | 368 ₹ | Debt to equity | 1.04 | 52w Index | 8.98 % | Qtr Profit Var | -93.6 % |
| EPS | -1.10 ₹ | Industry PE | 65.3 |
📊 Financial Overview
- Revenue & Profit Growth: Quarterly PAT improved slightly to ₹0.22 Cr. from a loss of ₹-17.3 Cr., but overall profitability remains weak.
- Margins: ROE at 1.50% and ROCE at 5.11% → very low efficiency.
- Debt: Debt-to-equity ratio of 1.04 → moderately high leverage.
- Cash Flow: Limited due to weak earnings.
- Return Metrics: EPS at ₹-1.10, negative earnings power.
💹 Valuation Indicators
- P/E Ratio: Not meaningful due to negative EPS.
- P/B Ratio: Price ₹173 / Book Value ₹38.7 ≈ 4.47.
- PEG Ratio: Not available, reflecting lack of growth clarity.
- Intrinsic Value: Current valuation stretched given weak fundamentals.
🏢 Business Model & Competitive Advantage
- Operates in quick-service restaurant franchise operations (notably KFC and Pizza Hut).
- Competitive advantage lies in brand recognition and franchise network.
- Challenges include high debt, weak profitability, and consumer demand fluctuations.
📈 Entry Zone Recommendation
- Technicals: RSI at 34.3 (oversold), MACD negative, price below 50DMA (203) and 200DMA (255).
- Entry Zone: Accumulation possible near ₹160–170 for speculative investors.
- Holding Guidance: Suitable only for high-risk investors; long-term holding requires sustained profitability improvement.
✅ Positive
- Turned profitable in the latest quarter (₹0.22 Cr.).
- DII holdings increased (+0.29%).
- Strong franchise brands provide long-term potential.
⚠️ Limitation
- Weak ROE (1.50%) and ROCE (5.11%).
- High debt-to-equity ratio (1.04).
- Negative EPS (-₹1.10).
- No dividend yield (0.00%).
📉 Company Negative News
- Quarterly profit variation (-93.6%) shows instability.
- Stock corrected sharply from ₹368 to ₹173.
- FII holdings decreased (-2.09%).
📈 Company Positive News
- Company returned to profitability after prior losses.
- DII confidence increased slightly (+0.29%).
- Oversold technicals may attract value buyers.
🌐 Industry
- Quick-service restaurant industry has strong long-term demand drivers.
- Industry PE at 65.3 indicates sector trades at high valuations.
- Consumer demand recovery and urbanization support growth potential.
🔎 Conclusion
- SAPPHIRE shows brand strength but suffers from weak profitability and high debt.
- Valuations remain stretched relative to fundamentals.
- Best considered for speculative investors with entry near ₹160–170; long-term holding depends on sustained earnings improvement.