Shivagrico Impl. (522237)

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

Key Financials

Strengths

• 120% profit growth and PEG 0.42 indicate earnings momentum from a low base, which could signal a genuine turnaround.
• Piotroski F-Score of 7/9 reflects improving financial health across profitability, leverage, and efficiency.
• Price near ₹20.60, close to the 52-week low of ₹19.21 and well below the ₹35.99 high, reduces the risk of chasing momentum.
• Latest quarter sales of ₹13 Cr show some operating scale relative to a ₹11 Cr market cap.

Concerns

• ROE of 6.34% and ROCE of 5.81% are weak; latest quarter net profit of ₹0 Cr means earnings are negligible.
• P/E of 25.81 with sales growth of only 3.82% and no dividend leaves no valuation or income cushion.
• Price-to-book of 1.73 means paying a 73% premium over book value for a low-return business.
• Promoter holding and debt/equity are N/A, creating transparency and leverage risk in a sub-₹20 Cr market cap company.

AI Analysis

This strikes me as a possible turnaround, and I have learned to be cautious with turnarounds. Shivagrico is a tiny industrial products company—market cap just ₹11 Cr. At ₹20.60, I am paying 25.81 times trailing earnings and 1.73 times book value. That is not a bargain unless the recovery is durable. The reported 120% profit growth makes the PEG look pleasing at 0.42, but the latest quarter tells me the hard truth: sales of ₹13 Cr and net profit of ₹0 Cr. Earnings are still razor-thin. So the growth is from a very low base, not from a powerful franchise. Book value is ₹11.89, so the market is asking a 73% premium over assets. What sort of business supports that premium? One that earns high returns on capital. Instead, ROE is 6.34% and ROCE is 5.81%—ordinary returns at best. Sales growth of 3.82% suggests limited pricing power or demand. There is no dividend, so I cannot be paid to wait. The Piotroski score of 7/9 is encouraging and suggests the company's balance sheet is getting healthier. But a financial score alone does not create a moat. I also notice promoter holding and debt/equity are N/A. In a company this small, I need to know whether owners have skin in the game and how much leverage exists. Without that, I lack the margin of safety Graham insisted upon. The stock has fallen from ₹35.99 to ₹20.60, but a falling price is not automatically attractive. I will keep it on my watchlist, but I am not ready to invest until I see consistent quarterly profits and proof that returns on capital are moving well above 6–7%.

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