Shri Gang Indus (523309)

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

Key Financials

Strengths

• Attractive valuation with P/E of 11.35 and PEG of 0.36 against 35.04% profit growth
• Latest quarter shows strong operating momentum: ₹114 Cr sales and ₹14 Cr net profit
• ROCE of 42.66% indicates efficient use of capital employed
• Piotroski F-Score of 7/9 points to improving fundamentals

Concerns

• ROE of -159.02% and unavailable book value suggest a likely negative net worth or severely impaired equity
• Debt/equity and promoter holding data are unavailable, leaving ownership and leverage risks unquantified
• No dividend yield means the entire return depends on speculative capital appreciation
• Price has fallen sharply from ₹109 to ₹67.78, reflecting high volatility

AI Analysis

At ₹67.78, Shri Gang Indus carries a market cap of only ₹124 Cr and a P/E of 11.35. For a company growing sales at 28.31% and profits at 35.04%, that appears cheap; a PEG of 0.36 strengthens the case. But I was trained to look first at the balance sheet, and here the picture is cloudy. Book value is unavailable, debt/equity is unavailable, and ROE is minus 159.02%. That combination tells me equity is impaired, likely negative, and I cannot compute a meaningful price-to-book. No promoter holding data, no dividend—so the investment relies on earnings recovery rather than tangible asset backing or income. The recent quarter provides hope: sales of ₹114 Cr and net profit of ₹14 Cr, with ROCE at 42.66% and a Piotroski F-score of 7/9. These numbers suggest an operating turnaround may be under way. However, a positive ROCE on a small capital base can look flattering while the equity base is still negative. The 52-week range of ₹61.41 to ₹109.00 also shows this is a volatile, low-liquidity small-cap. I would need to see the company continue to convert profits into positive retained earnings, rebuild book value, and eventually restore a normal ROE. In Graham's language, price is what you pay, value is what you get. Here the price is low, but without confirmed book value, debt details, and promoter commitment, I cannot confidently declare a large margin of safety. It might become a compounder if the turnaround sticks, but today it is a speculative recovery. I would keep it on the watchlist, not the core portfolio.

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