Shelter Infra (526839)

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

Key Financials

Strengths

• Price-to-book of 1.07 is close to stated book value of ₹11.24, offering a crude asset-based floor if liabilities are not hidden.
• Current market cap of ₹5 crore is tiny, so even a small absolute order flow can create outsized price moves.
• Latest quarter still shows sales of ₹1 crore, indicating the business has not completely stopped operating.
• 52-week low of ₹11.00 versus current ₹12.00 suggests the stock is already near its lower trading range.

Concerns

• ROE of 0.78% and ROCE of 1.91% are far below any reasonable cost of capital; the business earns almost nothing on shareholder equity.
• Profit growth of -250% and a Piotroski F-score of 3/9 point to deteriorating fundamentals and possible losses.
• Sales declined 10% with no dividend and negligible absolute profitability, leaving no compounding engine.
• Promoter holding and debt/equity are not disclosed, so the true balance-sheet risk cannot be assessed.

AI Analysis

Let me start with the obvious: this is a very small company. Market cap of ₹5 crore and latest quarterly sales of ₹1 crore means it is a microcap in the truest sense. At ₹12, the stock trades at 1.07 times book value of ₹11.24. That sounds cheap, but cheapness is an illusion if the business cannot earn a return on that book. Return on equity is just 0.78% and return on capital employed 1.91%. For a civil construction firm, these numbers tell me there is no durable edge. Sales fell 10% and profit growth collapsed by 250%, with latest quarter net profit near zero or negative. A Piotroski F-score of 3/9 reinforces the picture of deteriorating financial health. When I buy an asset play, I want a margin of safety in tangible assets and a management that allocates capital sensibly. Here, the only possible bull case is that price is close to book value, so downside may be limited if assets are genuine. But I cannot verify promoter holding, debt-equity or cash quality. The business earns almost nothing on its assets, pays no dividend, and has no growth. That is a combination that can destroy value slowly. In Graham's language, this is not a bargain; it is a statistical curiosity. I would need many years of consistent earnings, a clean balance sheet and evidence of orders before I put even a small amount of retail capital here. The 52-week range of ₹11 to ₹19 shows the stock has fallen from its high, but a falling price does not by itself create value. The company must first fix operations. Until then, I watch from the sidelines.

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