Shilp Gravures (513709)

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

Key Financials

Strengths

• Trades below book value: P/B of 0.85 against book value ₹177.87 per share, offering a margin of safety if asset values hold.
• Piotroski F-Score of 7/9 suggests improving financial health and operating efficiency.
• P/E of 13.11 and PEG of 0.08 indicate the market is not crediting the 304.35% profit recovery.
• Sales growth of 8.05% and positive quarterly net profit suggest the business is operational, not distressed.

Concerns

• ROE of 6.45% and ROCE of 2.28% are weak; the company earns poor returns on equity and capital employed.
• Latest quarter net profit of ₹1 Cr on ₹23 Cr sales implies a thin ~4.3% margin; profit growth may be low-base driven.
• Share price has fallen from a 52-week high of ₹315 to ₹150.95, showing negative momentum and possible value-trap risk.
• Promoter holding and debt/equity are undisclosed, so governance and capital structure risks are hard to assess.

AI Analysis

At ₹150.95, Shilp Gravures looks like a Graham-style bargain on the surface. It trades at 0.85 times book value, against a book value of ₹177.87 per share, and the P/E is 13.11. The Piotroski F-score of 7 out of 9 suggests recent financial health is reasonable. But a value investor must ask whether the business earns a good return on capital. ROE is just 6.45% and ROCE is only 2.28%. Those are weak numbers for any industrial company. The reported profit growth of 304.35% appears spectacular, but the latest quarter shows only ₹1 crore net profit on ₹23 crore sales, implying a thin margin. This looks more like a low-base recovery than durable compounding. Sales growth of 8.05% is moderate, and the 1.17% dividend yield is not meaningful compensation while waiting. The share has fallen from a 52-week high of ₹315 to ₹150.95, so negative sentiment is visible. Promoter holding and debt/equity are not disclosed, so I cannot fully assess capital structure or insider alignment. With book value at ₹177.87 and a Piotroski score of 7, the company is not in obvious distress. Still, the weak ROCE tells me this is not a franchise with pricing power; it is a commodity-linked, cyclical business. In such situations, a low P/B can offer protection only if the assets are really worth book value and if management can eventually earn a better return on them. I would not pay up for growth here. I would wait for sustained improvement in margins and capital returns. Price is what you pay; value is what you get. At this price, I need more evidence that value is actually being created for minority shareholders.

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