Shalibhadra Fin. (511754)

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

Key Financials

Strengths

• ROE and ROCE are healthy at 15.37% and 15.03%, showing decent capital efficiency.
• Piotroski F-Score of 7/9 indicates reasonable fundamental health.
• Sales growth of 12.89% shows the business is expanding for now.
• Stated P/E of 13.72 is not optically expensive if earnings quality holds.

Concerns

• P/B of 18.23 against book value of ₹34.18 means paying ₹623 for ₹34 of net worth; no margin of safety.
• The P/E and P/B/ROE data are internally inconsistent, signalling possible one-time earnings or stale book value.
• Profit growth of 6.79% lags sales growth of 12.89%, indicating margin compression.
• The 52-week range from ₹68.40 to ₹623.00 looks speculative, and dividend yield is a thin 0.48%.

AI Analysis

Let me start with the numbers, because Graham taught me to demand a margin of safety. Shalibadra Fin trades at ₹623, a ₹481 Cr market cap. The stated P/E of 13.72 looks reasonable for a business growing profits at 6.79%. But then I look at the book: book value is only ₹34.18, so I am paying 18.23 times net worth. An NBFC is ultimately worth the quality of its loan book, and a 15.37% ROE on that ₹34 book cannot justify a ₹623 price unless future earnings are dramatically higher or book value is understated. These figures do not reconcile, and that is a red flag, not a bargain. Sales grew 12.89% but profit grew only 6.79%, so margins are being squeezed. The latest quarter shows ₹11 Cr sales and ₹5 Cr profit, an unusually high margin; I need to know if that is sustainable or a one-off. The Piotroski score of 7/9 is comforting, but it is backward-looking. The dividend yield of 0.48% means I get almost nothing while I wait. And the 52-week range from ₹68.40 to ₹623.00 screams speculation, not quiet compounding. As Buffett says, it is far better to buy a wonderful business at a fair price than a fair business at a wonderful price. Here I am being asked to pay a wonderful price for a fair business, with missing data on promoter holding and debt/equity. I would happily stay on the sidelines until the economics become transparent and the price offers a margin of safety.

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