Sharat Industrie (519397)

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

Key Financials

Strengths

• Sales growth of 47.80% and profit growth of 79.55% show strong near-term momentum
• ROE of 15.94% is decent and above the typical cost of equity
• Piotroski F-Score of 7/9 points to solid recent financial health and earnings quality
• Low PEG of 0.58 suggests the market may be underpricing growth sustainability

Concerns

• P/E of 36.69 is rich for a commodity seafood business with ROCE of only 11.88%
• Current price ₹46.85 is far below the reported 52-week range ₹114.95–₹179.00; the anomaly needs explanation
• Dividend yield of 0.16% is negligible, providing no income cushion
• Promoter holding and debt/equity are unavailable, leaving ownership and leverage risks unassessed

AI Analysis

At ₹46.85, Sharat Industrie is priced where growth looks seductive: sales up 47.80%, profit up 79.55%, and a PEG of 0.58. But I have learned to be skeptical when a commodity business suddenly grows fast. Seafood has no natural moat; prices and input costs are volatile. A 36.69 P/E with ROCE of only 11.88% tells me the market is paying handsomely for a business that earns a modest return on capital. Book value is ₹27.51, so price-to-book of 1.70 is not unreasonable, but there is no margin of safety for a cyclical. The Piotroski F-Score of 7 is encouraging—it suggests recent earnings quality and balance sheet are not deteriorating. Yet I cannot ignore the glaring inconsistency: the stated 52-week range is ₹114.95–₹179.00, yet the current price is ₹46.85. Either the data is wrong, or the stock has suffered a catastrophic collapse. As a Graham-style investor, I never rely on numbers that contradict themselves. I also notice a negligible dividend yield of 0.16%; this company is not returning cash to shareholders. With promoter holding not disclosed and debt/equity unavailable, I cannot judge management's integrity or leverage. In seafood, working capital and debt can be hidden dangers. So while growth is impressive, quality is unproven. This is a cyclical grower, not a franchise. I would wait for a lower price, better balance-sheet disclosure, and a longer track record. Be fearful when the numbers look too good; here the numbers are both good and confusing, so caution is essential.

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