Shervani Indl Sy (526117)

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

Key Financials

Strengths

• Trades close to reported book value with P/B of 1.07 against book value of ₹533.20.
• Book value per share is significant relative to the ₹150 crore market cap, offering a tangible asset reference point.
• Small dividend yield of 0.75% still provides some cash return despite weak earnings.

Concerns

• Sales down 43.55% and profit down 94.23% year-on-year; latest quarter net profit is ₹0 crore.
• ROE of 1.94% and ROCE of 1.51% show very poor returns on capital and equity.
• Piotroski F-Score of 3/9 suggests weak overall financial health.
• P/E of 48.76 is unsupported by current earnings; debt/equity and promoter holding data are missing.

AI Analysis

At ₹571.80, this company sells at 1.07 times its book value of ₹533.20. A Graham buyer likes assets, but assets must earn. Here the earning power is almost absent: latest quarter revenue is ₹7 crore and net profit is ₹0 crore. Full-year sales fell 43.55% and profits fell 94.23%. A P/E of 48.76 on that collapsing base is not a measure of value; it is merely a price divided by a shrinking number. With ROE at 1.94% and ROCE at 1.51%, management is not producing acceptable returns on either equity or capital employed. The Piotroski F-Score of 3 out of 9 reinforces my caution: the balance sheet and operations are showing signs of strain. Debt-to-equity is not disclosed, so I cannot tell how much leverage sits underneath this book value. The dividend yield of 0.75% offers little income while I wait. Being at the top of the 52-week range—₹571.80 versus ₹282.00 low—does not make me more comfortable; it means Mr. Market has already bid the shares up despite deteriorating fundamentals. In Ben Graham's language, this may be an asset play, not a going-concern bargain. The margin of safety depends entirely on whether the reported book value of ₹533.20 is realisable and whether management can monetise the projects at sensible prices. Until I see evidence of earnings recovery or actual asset sales returning cash to shareholders, I would not treat book value as a floor. At best, this is a possible appraisal situation, but the operating results are far too weak to qualify as a wonderful business. I would wait for both a better price and a better business performance.

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