Sharma E I Hosp. (524548)

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

Key Financials

Strengths

• Sales growth of 17.91% shows the business is expanding on the top line.
• Book value of ₹38.31 provides a tangible asset base; P/B of 1.31 is not a severe premium.
• ROCE of 12.77% is above ROE of 10.02%, suggesting reasonable operating efficiency before leverage effects.
• Healthcare services in India offer long-term structural demand tailwinds.

Concerns

• Profit growth is -37.93% and latest quarter net profit is ₹0 Cr, so growth is not reaching the bottom line.
• P/E of 27.24 is expensive for a business with declining earnings, and dividend yield is zero.
• Current price of ₹50.09 is below the stated 52-week low of ₹80.15, a severe red flag.
• Piotroski F-score of 4/9 and missing promoter holding data raise governance and quality concerns.

AI Analysis

At ₹50.09, Sharma E I Hosp carries a market cap of just ₹16 Cr. Let me put that in perspective: this is a tiny healthcare services player. Book value is ₹38.31, so I am being asked to pay 1.31 times book for a business earning 10.02% on equity and 12.77% on capital. Those returns are mediocre, not the hallmark of a wonderful enterprise with a durable moat. Sales did grow 17.91%, but profit growth is negative 37.93%, and the latest quarter shows net profit at ₹0 Cr. That means the growth is being consumed by costs, and there is no margin of safety. A trailing P/E of 27.24 for declining earnings is not cheap; it is costly. The Piotroski F-score of 4/9 reinforces my concern about financial health. Dividend yield is zero, so the only possible return depends on a re-rating of a distressed small-cap story. The 52-week range is especially troubling: the current price of ₹50.09 sits below the stated low of ₹80.15. In my experience, when a stock trades below its own 52-week range, either the data is unreliable or, if actual, the market is pricing in something ugly. As Graham, I buy with margin of safety. Here I see no pricing power, low returns on capital, no dividend, and collapsing earnings. I would need tangible evidence of a turnaround—several quarters of profit recovery and honest balance-sheet detail. Until then, this belongs in the 'too hard' pile.

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