Shree Salasar (503635)

Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Price-to-book of 0.35 offers a wide margin of safety versus book value of ₹39.96.
• P/E of 14.36 with reported sales growth of 155% and profit growth of 301% looks inexpensive if growth sustains.
• Piotroski F-Score of 7/9 indicates decent financial health.
• Latest quarter delivered ₹31 Cr sales and ₹5 Cr net profit, showing some positive momentum.

Concerns

• ROE of 1.55% and ROCE of 2.81% are far too low for a financial services business.
• Zero dividend yield means shareholders must rely entirely on uncertain capital appreciation.
• 52-week range of ₹14.58 to ₹828.95 shows extreme volatility and possible value-trap risk.
• Debt/Equity and promoter holding are not disclosed, limiting transparency.

AI Analysis

At ₹13.89, this is a Graham-style bargain on the surface: one rupee of book value for thirty-five paise, a P/E of 14.36, and a Piotroski score of 7 hints at balance-sheet discipline. But value investing demands more than cheapness. Shree Salasar earns only 1.55% ROE and 2.81% ROCE—that tells me the assets are not producing satisfactory returns. A financial services firm with such low returns can be a value trap unless operating performance revives. The reported sales growth of 155% and profit growth of 301% look exciting, but from what base? Latest quarter sales of ₹31 Cr and net profit of ₹5 Cr are tiny relative to the ₹198 Cr market cap and ₹39.96 book value. The PEG of 0.06 is seductive, but I do not trust extrapolated growth in a business with no clear moat and no promoter-holding disclosure. The 52-week range—from ₹828.95 down to ₹14.58—screams extreme volatility and raises red flags about governance, liquidity, or a possible corporate action. I would not call this a wonderful business; it is a possible asset play. Graham would look at the 0.35 price-to-book and demand a catalyst. Without higher ROE, a dividend, or debt clarity, the discount can persist. I will watch whether quarterly earnings improve enough to lift ROE above the cost of capital. Buying a cheap financial stock is fine only if management redeploys capital wisely; otherwise the low return explains the low valuation.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer