Shri Keshav (530977)

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

Key Financials

Strengths

• Sales growth of 34.98% shows strong top-line momentum, possibly from better demand or realisations.
• Book value is positive at ₹58.05 per share, providing some asset backing.
• ROCE of 5.25% is positive, meaning the capital base is not entirely idle or value-destructive.
• The latest quarter still shows ₹38 Cr of sales, indicating the business has a functioning operating base.

Concerns

• Profit growth is -184.38%, and the latest quarter reports a net loss of ₹1 Cr, showing poor earnings quality.
• ROE is -1.17%, so shareholder equity is not earning a positive return.
• At 3.31 times book value, the market is paying a significant premium for a business with weak current profitability.
• Piotroski F-Score of 4/9, zero dividend yield, and missing promoter/debt disclosures add caution.

AI Analysis

Let me start with what the numbers tell me. Shri Keshav has grown sales by 34.98%, but profits have collapsed by 184.38%. The latest quarter shows ₹38 Cr of sales and a net loss of ₹1 Cr. Growth that does not reach the bottom line is not value creation. In fact, with negative earnings, the P/E is meaningless, and a negative ROE of -1.17% tells me the equity is not being put to productive use. Book value is ₹58.05 per share, yet the stock trades at ₹192.20. That is 3.31 times book for a cement company earning less than the cost of capital. Only a very special moat could justify that, and cement is a commodity business. I do not see pricing power or a low-cost edge in these figures. ROCE of 5.25% is positive but modest; it does not support such a premium multiple. My mentor Graham would call this speculation, not investment. The Piotroski score of 4 out of 9 is a yellow flag. There is no dividend yield either, so I am not being paid to wait. The 52-week range shows the stock has fallen from ₹286.75 to its current level, but a falling price alone is not a margin of safety. The question is whether this small, ₹337 Cr market-cap business can turn its top-line momentum into sustainable profits. I would keep it on a watch list. If quarterly losses become profits, if ROE turns decisively positive, and if ROCE moves well above 5.25%, then the story becomes interesting. Until then, this is a cyclical with execution risk, not a compounder. I can wait for better odds.

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