SAPPHIRE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.7
| Stock Code | SAPPHIRE | Market Cap | 5,811 Cr. | Current Price | 181 ₹ | High / Low | 368 ₹ |
| Book Value | 38.3 ₹ | Dividend Yield | 0.00 % | ROCE | 2.98 % | ROE | -2.01 % |
| Face Value | 2.00 ₹ | DMA 50 | 182 ₹ | DMA 200 | 228 ₹ | Chg in FII Hold | -0.24 % |
| Chg in DII Hold | -0.05 % | PAT Qtr | -4.55 Cr. | PAT Prev Qtr | 0.22 Cr. | RSI | 50.5 |
| MACD | 1.05 | Volume | 21,60,999 | Avg Vol 1Wk | 14,62,790 | Low price | 140 ₹ |
| High price | 368 ₹ | Debt to equity | 1.08 | 52w Index | 18.0 % | Qtr Profit Var | -2,168 % |
| EPS | -1.51 ₹ | Industry PE | 69.2 |
📊 Financials: SAPPH```html
Fundamental Rating: 2.7
📊 Financials: SAPPHIRE has a market cap of ₹5,811 Cr. Quarterly PAT dropped from ₹0.22 Cr. to -₹4.55 Cr., showing severe losses. ROE at -2.01% and ROCE at 2.98% reflect weak efficiency. Debt-to-equity ratio of 1.08 indicates moderate leverage. EPS at -₹1.51 highlights negative profitability and weak cash flows.
💹 Valuation: P/E is not meaningful due to negative earnings. P/B ratio (~4.7) is high compared to book value ₹38.3. PEG ratio is unavailable, limiting growth assessment. Intrinsic value appears lower than CMP ₹181, suggesting limited upside. Industry PE stands at 69.2, but SAPPHIRE’s losses make comparison difficult.
🏦 Business Model: SAPPHIRE operates in the quick-service restaurant (QSR) franchise space, leveraging brand partnerships and consumer reach. Its competitive advantage lies in franchise networks and brand recognition. However, profitability is under strain due to rising costs, debt, and weak margins.
📉 Entry Zone: RSI at 50.5 suggests neutral momentum, while MACD at 1.05 indicates mild bullishness. A cautious entry zone could be around ₹150–₹160 for accumulation. Long-term holding requires a turnaround in profitability and debt management.
Positive
- 📈 Strong brand partnerships in QSR sector.
- 🌐 Wide consumer reach through franchise model.
- 📊 Liquidity supported by strong trading volumes.
Limitation
- ⚠️ Negative ROE (-2.01%) and weak ROCE (2.98%).
- 📉 Quarterly PAT turned negative (-₹4.55 Cr.).
- 🔄 High debt-to-equity ratio (1.08).
Company Negative News
- 📉 Decline in FII holding (-0.24%).
- ⚠️ Reduction in DII holding (-0.05%).
Company Positive News
- 📊 Stock trading near DMA 50 (182), showing stability.
- 📈 Liquidity supported by strong average weekly volumes.
Industry
- 💹 Industry PE at 69.2, but SAPPHIRE’s losses distort valuation.
- ⚡ QSR sector expanding with urban demand growth.
- 🏦 Competition from global and domestic fast food chains.
Conclusion
⚖️ SAPPHIRE faces weak profitability, high debt, and negative returns despite strong brand presence in the QSR sector. Valuations remain unattractive given losses. Entry may be considered cautiously around ₹150–₹160, but long-term holding requires a clear turnaround in earnings and margin improvement.
For a broader view, you could explore SAPPHIRE peer comparison or a technical chart analysis to complement this fundamental assessment.