Shraddha Prime (531771)

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

Key Financials

Strengths

• ROE of 58.87% and ROCE of 16.30% indicate strong capital efficiency.
• Sales growth of 194.75% shows rapid business expansion.
• PEG of 0.15 with a P/E of 18.34 suggests growth is not fully priced in.
• Piotroski F-Score of 7/9 points to sound financial health.
• Latest quarter delivered ₹129 Cr sales and ₹13 Cr net profit.

Concerns

• Profit growth of 50.88% lags far behind sales growth of 194.75%, implying margin compression.
• P/B of 7.19 leaves no margin of safety versus book value.
• Current price of ₹112.95 is below the stated 52-week range of ₹146.20–₹258.90, a red flag or data anomaly.
• Debt/Equity and promoter holding are N/A, raising transparency concerns.

AI Analysis

Let me start with the obvious: this is a small, fast-moving real estate company, not the sort of business Graham would have called a bargain. Book value is ₹15.72, yet I am being asked to pay ₹112.95 — that is 7.2 times book. In property, asset values and timing matter, and a low price-to-book usually provides a cushion; here there is none. But the earnings record catches attention. Return on equity is 58.87%, and ROCE is 16.30%. Sales grew 194.75%, while profits grew 50.88%. At a P/E of 18.34 and a PEG of 0.15, the market seems to be pricing in little future growth. The latest quarter shows ₹129 Cr in sales and ₹13 Cr in profit — against a ₹232 Cr market cap, that one quarter alone justifies a big part of the price if sustained. That is a big if. The Piotroski score of 7/9 suggests the company's financial position is improving, not deteriorating. But I notice profit growth is much slower than sales growth — tripling revenue while profits only rise half again means margins are being squeezed. Real estate is cyclical and project-based; a single project can distort the numbers. I am also troubled by what I do not know: debt-to-equity is N/A, promoter holding is N/A, and the stock is trading at ₹112.95, below its stated 52-week range of ₹146.20 to ₹258.90. That discrepancy alone would stop me from committing capital. Let the company build a longer track record and show me the balance sheet first. At this price, with these unknowns, I would leave it alone.

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