Shukra Pharma. (524632)

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

Key Financials

Strengths

• Revenue and profit growth are exceptional: sales +269.85% and profit +544.30%.
• Latest quarter shows strong profitability: ₹20 Cr net profit on ₹39 Cr sales, implying a very high margin.
• Piotroski F-Score of 7/9 suggests decent financial health and improving fundamentals.
• High ROE of 53.72% and ROCE of 21.80% indicate efficient capital use, though on a thin equity base.

Concerns

• Extreme valuation: P/E of 61.93 and P/B of 68.60 leave no margin of safety.
• Book value is only ₹1.18; the high ROE may be inflated by a small equity base rather than a durable moat.
• Debt/Equity and promoter holding are N/A, so financial leverage and promoter alignment cannot be verified.
• Dividend yield is negligible at 0.02%, and hyper-growth may normalize sharply with competition and mean reversion.

AI Analysis

When I look at Shukra Pharma, the first thing that catches my attention is the astonishing pace of growth. Sales are up 269.85%, profit up 544.30%, and the latest quarter shows ₹39 Cr in sales and ₹20 Cr in net profit. That is a spectacular margin, but my mind immediately turns to sustainability. In all my years, I have learned that extraordinary growth rates attract competition and rarely persist at this level. The market is asking me to pay ₹80.95, which translates into a P/E of 61.93 and a P/B of 68.60. Book value is just ₹1.18, so the company is being valued almost entirely on future expectations, not tangible assets. The ROE of 53.72% sounds magnificent, but when the equity base is that thin, high ROE can distort rather than inform. A Piotroski score of 7 is encouraging, and the PEG of 0.15 looks tempting, but a PEG built on a single explosive year of profit growth is not a foundation I trust. The dividend yield is only 0.02%, so I cannot rely on income while I wait. I also notice that debt/equity and promoter holding are not available; for a company this volatile, that is a material gap in my analysis. Without knowing leverage or insider ownership, I am flying blind. The share price has moved from ₹17.06 to ₹80.95 in 52 weeks, and after such a run, Mr. Market is feeling euphoric. My mentor Graham always said that price is what you pay, value is what you get. At 68 times book, I am not getting a margin of safety. If Shukra Pharma can prove this growth is durable with consistent cash flows, it may become a wonderful business. But at this price, I would rather watch from the sidelines. Patience is a virtue in investing, and sometimes the best action is no action.

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