Shreevatsaa Fin. (532007)

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

Key Financials

Strengths

• Trades close to book value with P/B of 1.05, offering some downside cushion if assets are genuine.
• Market cap of just ₹22 crore leaves room for possible asset unlocking or restructuring.
• Sales grew 4.35%, indicating at least some business activity despite weak profitability.
• Current price is near the 52-week low, far below the high of ₹40.39, reducing speculative enthusiasm.

Concerns

• P/E of 52.49 and PEG of 12.07 are far too rich for a company with falling profits.
• Profit declined 15%, and the latest quarter shows zero sales and zero net profit.
• ROE of 2.23% and ROCE of 2.44% show very poor returns on capital and book value.
• Piotroski F-Score of 4/9 indicates weak financial health, and there is no dividend or promoter holding disclosure.

AI Analysis

At first glance, this is not the kind of business I would normally spend much time on. Shreevatsaa Fin. has a market cap of just ₹22 crore and trades at ₹21.49, barely above book value of ₹20.38. That sounds cheap on a P/B of 1.05, but cheapness must be weighed against earning power. With ROE of only 2.23% and ROCE of 2.44%, the company is earning very little on its capital. A P/E of 52.49 and a PEG of 12.07 tell me the market is paying for growth that I do not see. Profit actually fell 15% while sales grew only 4.35%. The latest quarter shows zero sales and zero profit, which is a serious red flag. There is no dividend to pay shareholders for waiting. The Piotroski F-score of 4/9 points to weak fundamental health, not the profile of a compounder. I see no moat here. A diversified commercial services company of this size, with no visible pricing power or repeat-earnings evidence, cannot justify a quality premium. The 52-week range of ₹19.89 to ₹40.39 shows the stock has been cut roughly in half. With no promoter holding data, I cannot assess alignment. In Graham's language, this is a sub-marginal business trading close to a possible asset value. If the book value is real and liquid, the downside may be cushioned, but I have no evidence of asset quality. The debt/equity is not available, and the latest quarterly blank makes me more cautious, not less. I would not call this a growth business. It is a possible asset play, but only if management can turn the balance sheet into earnings or cash. Until I see consistent profits, acceptable returns on equity, and honest allocation of capital, I would need a much larger margin of safety. I will wait and watch.

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