Shetron (526137)

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

Key Financials

Strengths

• Piotroski F-Score of 7/9 suggests improving balance-sheet fundamentals.
• ROCE of 11.47% is reasonably above the low ROE, indicating some operational capital efficiency.
• Sales growth of 7.43% with 85% profit growth shows momentum, though from a low base.
• PEG of 0.65 means valuation could be reasonable if the profit growth is sustainable.

Concerns

• Latest quarter reported ₹56 Cr sales but net profit of ₹0 Cr, raising serious doubts about earnings quality.
• ROE of only 5.57% is weak for a business trading at 29.82 times earnings.
• P/B of 1.73 and P/E of 29.82 offer limited margin of safety.
• Debt/Equity and promoter holding data are unavailable, making a full assessment impossible.

AI Analysis

This business fails my first tests of a value investment. At ₹132.05, Mr. Market values Shetron at ₹121 crore, and the P/E of 29.82 means I am paying nearly 30 years of current earnings. But what am I buying? A packaging company with a return on equity of only 5.57%. Benjamin Graham would ask whether the company can earn a satisfactory return on the money shareholders have put in; 5.57% is far too thin. The latest quarter adds to my caution: ₹56 crore of sales with zero net profit. That is not the sign of pricing power. The 85% profit growth sounds exciting, but it starts from a low and fragile base, and a PEG of 0.65 only matters if earnings can continue consistently. Sales growth of 7.43% is respectable, not extraordinary. Book value is ₹76.22, so the market is asking for a 73% premium above book. I do not mind paying more than book for a wonderful business with high ROE, but this is not that. On the positive side, the Piotroski F-score of 7 suggests the balance sheet has improved, and ROCE of 11.47% is better than the ROE, indicating the company does not have an excessively leveraged structure. Still, the zero-profit quarter and the high multiple remove the margin of safety that Graham insisted upon. For an Indian retail investor, patience is important. I would need several quarters of consistent profits, rising ROE closer to at least 12%, and clear debt details before I can believe this is a genuine turnaround rather than a statistical bounce. Until then, I will watch and wait.

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