Shriram AMC (531359)
TurnaroundFairStock Score: 8/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹498.05 |
| Market Cap | ₹680.4 Cr |
| P/E Ratio | 0 |
| ROCE | -23.16% |
| ROE | -24.13% |
| Dividend Yield | 0% |
| Profit Growth | -0.19% |
| Debt/Equity | — |
| Sales Growth | 150% |
| 52-Week Range | ₹251.2 — ₹519 |
| Sector | Capital Markets |
| Book Value | ₹42.65 |
Strengths
- Sales growth of 150% indicates rapid revenue expansion, though from a very small base.
- Positive book value of ₹42.65 provides some asset backing.
- Asset management industry inherently scalable with high operating leverage once scale is achieved.
- Debt/Equity N/A suggests leverage is not a prominent financial risk.
- Price near 52-week high of ₹538.90 shows strong market interest and momentum.
Concerns
- Net loss of ₹5 crore in the latest quarter and negative P/E mean no earnings support.
- ROE of -24.13% and ROCE of -23.16% reflect serious value destruction.
- P/B of 11.68 against book value of ₹42.65 leaves zero margin of safety.
- Piotroski F-Score of 3/9, no dividend, and a FairStock Score of 8/100 signal weak financial health.
AI Analysis
Let me be candid: this is not a business I would put in my circle of competence. Shriram AMC has a market price of ₹498.05, capitalising the company at ₹680 crore, yet the latest quarter shows sales of just ₹4 crore and a net loss of ₹5 crore. The P/E is meaningless at 0.00 because earnings are negative. Return on equity is -24.13%, and ROCE is -23.16%, which tells me every rupee of capital employed is currently destroying value. The price-to-book of 11.68 is rich, especially when the book value is only ₹42.65. As Graham taught, price is what you pay, value is what you get; here the market is paying a huge premium over assets while the company burns cash. Sales growth of 150% sounds exciting, but it starts from a base so small that it is irrelevant to valuation. Profit growth is essentially flat at -0.19%, so revenue growth is not translating to the bottom line. The Piotroski F-Score of 3 out of 9 confirms weak financial health. There is no dividend to compensate while waiting. Taken together, this is a high-risk, pre-profit asset manager. If the firm can scale up and control costs, it might be a turnaround story, but at today's price, I see no margin of safety. I would rather wait until earnings turn positive and the market offers a price that makes sense relative to sustainable profits. Until then, patience, not action.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer