Shardul Sec. (512393)

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

Key Financials

Strengths

• Piotroski F-Score of 7/9 suggests improving financial health despite recent losses.
• Book value of ₹81.05 provides some tangible asset backing per share.
• ROCE of 6.61% indicates some positive operating return on capital employed.
• Stockbroking has operational leverage that could benefit from rising market activity.

Concerns

• Latest quarter shows negative sales of ₹-13 Cr and net loss of ₹-17 Cr.
• Negative ROE of -9.48% is destroying shareholder value.
• P/B of 2.84 is expensive relative to book value, with no earnings to justify the premium.
• Zero dividend and unavailable promoter holding and growth data reduce transparency.

AI Analysis

At ₹230.50, Shardul Sec. has a market cap of ₹403 Cr against a book value of ₹81.05 per share, so the market is paying 2.84 times stated book. I have no interest in paying such a premium for a business whose return on equity is negative. Last quarter sales were minus ₹13 Cr and net profit minus ₹17 Cr; that is not a business compounding wealth, it is destroying it. A negative ROE of 9.48% tells me management has not found a way to earn acceptable returns on shareholders' money, and with no dividend, the investor's only hope is that someone else will pay a higher price. The tenfold rise from ₹20.14 to ₹230.50 in the 52-week range shows price momentum, not fundamental value. The Piotroski F-Score of 7/9 is one genuinely positive signal; it suggests some improvement in underlying financial health. But given negative sales and losses, I would treat it cautiously. Stockbroking is a highly cyclical, low-moat business; earnings can swing violently with market volumes. I cannot rely on growth figures because they are not reported here, and promoter holding is unavailable. In Graham's language, price is what you pay, value is what you get. With negative earnings, no dividend, and weak return on equity, I see no margin of safety at ₹230.50. This may be an asset play at a much lower price, but at 2.84 times book with negative ROE, the downside is not protected. I would wait for profitable quarters, positive ROE, or a price closer to book before considering it.

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