₹822.0
+0.98% today
· 30d +14.34%
as of 2026-09-04
Price · Daily Candles
“SGMART's Soaring Sales Defy Stretched Valuation as DIIs and FIIs Increase Stakes.”
SGMART (Industrial Distribution) reported strong annual revenue growth of 6.38% YoY, reaching ₹6315 Cr, and a net profit increase of 7.38% to ₹111 Cr for FY26. Despite this performance, the stock trades at a premium with a TTM PE of 67.53 and a PB of 4.97, while its ROCE stands at 10.0%.
BULL CASE
+Annual revenue surged by 6.38% YoY to ₹6315 Cr, with net profit also increasing by 7.38% to ₹111 Cr for FY26.
+Sales growth predictions show consistent strength with sales_1y_rolling_4y and sales_1y_stable_7y ranking strong (>0.7) at 0.835 and 0.78 respectively, and sales_1y_recent_2y is neutral at 0.582.
+DIIs increased their stake by 0.3% QoQ to 5.27% in Q1 2026, alongside FIIs who increased their holding by 0.61% QoQ to 1.87%.
+The stock has generated significant returns, with a 3-month return of 38.5% and a 6-month return of 72.5%.
BEAR CASE
−The TTM PE ratio stands at 67.53, significantly higher than peer KHAITANLTD's 9.63, indicating a stretched valuation (Business Score: STRETCHED).
−Profitability remains a concern, with a profit margin of 1.76% and an operating profit margin of 3.69% in the latest quarter.
−Free Cash Flow (FCF) predictions are weak, with fcf_1y_recent_2y ranking at 0.196, fcf_1y_rolling_4y at 0.017, and fcf_1y_stable_7y at 0.0, suggesting potential FCF compression.
−Net profit CAGR for the last 3 and 5 years is null, potentially masking underlying inconsistencies in long-term earnings growth.
⟳ What Changed
₹ Latest Earnings · Q ending 2026-06-30
REVENUE
₹1309 Cr
NET PROFIT
₹46 Cr
OPM
5.2%
EPS
₹3.62
PE 67.53
Intrinsic value · DCF: N/A — ML model predicts severe Δ FCF compression (h1=-37.0%, h2=-29.7%, h3=-36.0% of mktcap), driving projected FCF negative by year 3 despite healthy current FCF. Treating as forecast outlier rather than reporting a misleading ₹0 valuation. Use the Strategy Fit and ML sections instead.
◇ Sector Position
SGMART's TTM PE of 67.53 is notably higher than its peer KHAITANLTD at 9.63, while its ROCE of 10.0% lags KHAITANLTD's 26.65%.
PEERPEROCE %
SGMART67.5310.0
ML Forward Growth Predictions 🔒
55
SCORE / 100
Overall
6-axis composite of the sections below.
Performance
—
—
Valuation
STRETCHED
20
Growth
STEADY
65
Profitability
AVERAGE
45
Technicals
NEUTRAL
63
Risk
LOW
80
Key Stats
TTM PE
67.53
P/B
4.97
52W HIGH
₹860.6
OFF HIGH
-4.49%
MKT CAP
₹10352 Cr
◉ Active Signals
MACDNeutral-2.6831
RSI(14)Bullish62.42
Near 52W HighBullish-4.49
⧉ Strategy Fit 🔒