Shree Bhavya (521131)

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

Key Financials

Strengths

• Trades at 0.61 times book value; market cap ₹22 Cr vs book value ₹36.51 per share offers apparent margin of safety.
• P/E of 9.40 is low on trailing earnings, though earnings are declining.
• ROE of 7.36% and ROCE of 10.60% show modest capital efficiency despite weak year.
• Near 52-week low of ₹22.00, suggesting limited downside if asset value holds.

Concerns

• Sales declined 14.34% and profit fell 50%; latest quarter net profit is zero.
• Piotroski F-Score of 3/9 signals weak fundamental health and possible balance-sheet stress.
• No dividend (0.00%) means no income support while waiting for recovery.
• Promoter holding and debt/equity data are unavailable, making assessment incomplete.

AI Analysis

At ₹22.25, Shree Bhavya looks like a classic Graham-type asset play. The market cap is only ₹22 crore, yet the book value is ₹36.51 per share, so I am buying at 0.61 times book. That sounds like a margin of safety. But Graham also taught me to check the earning power behind the asset. Here the picture is weak: sales have fallen 14.34%, profits have dropped 50%, and the latest quarter delivered zero net profit. A P/E of 9.40 is meaningless if the 'E' keeps evaporating. The Piotroski score of 3/9 reinforces my caution; it suggests deteriorating financial health. ROE of 7.36% and ROCE of 10.60% are acceptable, but not special. This is not a business with a wide moat; it is in Other Textile Products, a competitive, commodity-like segment without pricing power. No dividend means I get no income while I wait. With promoter holding and debt/equity not disclosed, I cannot fully trust the balance-sheet picture. If book value is real and losses do not continue, the stock is cheap. But cheap can become cheaper if earnings keep falling. I need a catalyst: stabilisation of sales, positive quarterly profit, or an improvement in F-score. Until I see that, this remains a possible asset play on the watchlist, not a compounder I would buy today.

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