Sharp India (523449)

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

Key Financials

Strengths

• No fundamental strength is visible from the given figures; revenue is ₹0 Cr and the business is loss-making.
• The only positive metric is the arithmetic ROE of 21.25%, which is misleading because it stems from negative book value.
• Recent price recovery from ₹36.00 to ₹83.09 is a trading observation, not a business strength.

Concerns

• Zero revenue in the latest quarter with a net loss of ₹6 Cr means the company is burning cash with no visible top line.
• P/B N/A and ROE of 21.25% due to negative equity point to an eroded balance sheet; ROCE of -1,695.92% confirms capital destruction.
• Piotroski F-Score of 2/9 plus profit growth of -15.91% show worsening financial health and no turnaround evidence.
• At ₹83.09 and a market cap of ₹227 Cr, valuation is unsupported by any earnings, dividend, or asset-backing data.

AI Analysis

Let me apply the first test Graham would use: does the company earn money? Sharp India does not. The latest quarter shows sales of ₹0 Cr and a net loss of ₹6 Cr. A business with zero revenue and persistent losses cannot be valued on earnings, so the P/E is 0.00 and the P/B is N/A—a warning sign of eroded net worth, not a mystery to admire. The reported ROE of 21.25% looks tempting, but it is an accounting mirage: a loss divided by negative shareholder equity can create a positive percentage. The real return on capital is -1,695.92%, which tells me every rupee deployed in this business is being burned. The Piotroski F-Score of 2/9 confirms severe financial stress. There is no moat, no pricing power, no dividend, and profit growth is -15.91%, meaning losses are widening. Sales growth of 0.00% is meaningless when the base itself is zero. At ₹83.09, the market capitalises this at ₹227 Cr—an extraordinary price for a company with no sales. The 52-week range from ₹36.00 to ₹105.58 is price emotion, not business evidence. In my view, this is not an investment; it is a speculative shell. I cannot underwrite a business with an N/A book value, zero revenue, and widening losses. The margin of safety is absent. I will pass and wait for a company with genuine earnings and a balance sheet I can trust.

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