Shree Metalloys (531962)

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

Key Financials

Strengths

• Sales growth of 42.03% and profit growth of 27.78% show strong momentum, with a PEG of 0.47 suggesting reasonable valuation if growth continues.
• ROE of 15.01% and ROCE of 17.27% reflect decent capital efficiency for a microcap NBFC.
• Piotroski F-Score of 7/9 indicates generally sound financials and low near-term distress risk.
• Current price of ₹39 is about 37% below the 52-week high of ₹62.29, offering a lower entry point than recent peaks.

Concerns

• Latest quarter shows sales of ₹31 crore but net profit of ₹0 crore, a major red flag against the annual growth narrative.
• Debt/Equity is N/A and promoter holding is N/A, leaving crucial leverage and governance questions unanswered for an NBFC.
• Dividend yield is 0.00%, so minority shareholders receive no cash return while taking microcap risk.
• Market cap of only ₹21 crore makes this a highly illiquid, vulnerable microcap investment.

AI Analysis

At first glance, Shree Metalloys has the numbers that would tempt a growth investor: sales up 42%, profit up 27.78%, ROE 15.01%, ROCE 17.27%, and a PEG of 0.47. A Piotroski F-score of 7 suggests decent financial health. But I have learned that a good business is not just a row of ratios; it must earn profits consistently. The latest quarter shows sales of ₹31 crore but net profit of exactly ₹0 crore. That is a stop sign for me. In any lending business, a zero quarter can mean provisioning, delayed income, or worse – but the figures given do not tell me which. Without debt-to-equity data and promoter holding, I cannot judge the true counter-party or governance risk. A market cap of ₹21 crore is tiny; this is a microcap NBFC, not a franchise with an economic moat. Book value is ₹16.34, price is ₹39, so I am paying 2.39 times book for a 15% ROE. That is not egregious, but it offers little margin of safety if the zero-profit quarter repeats. Dividend yield is nil; as a minority shareholder I get no cash while waiting. The 52-week range of ₹27.94–₹62.29 tells me this is a volatile, speculative ride. If the company can prove the latest quarter is an aberration and maintain 25–30% profit growth, ₹39 may be reasonable. But I want certainty, not hope. In an NBFC, leverage and asset quality are everything; with N/A debt/equity and no promoter data, I cannot do my Graham-style homework. Therefore, I would put this on my watchlist, not in my wallet, until the record becomes cleaner and trustworthy.

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