Shiva Cement (532323)

FairStock Score: 11/100 — RISKY

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

Key Financials

Strengths

• Sales growth of 118.56% indicates strong top-line momentum and demand for its cement.
• Piotroski F-Score of 6/9 suggests some improving balance-sheet mechanics, not yet earnings.
• Price at ₹47.05 equals the 52-week high, showing aggressive market interest and potential recovery hopes.
• Latest quarter sales of ₹126 Cr show scale building, possibly from capacity expansion.

Concerns

• Latest quarter net loss of ₹34 Cr with ROE at -78.44% means severe shareholder value destruction.
• Book value is only ₹6.78, but price is ₹47.05, giving a P/B of 6.94 with no earnings support.
• Zero dividend yield and negative ROCE of -2.97% indicate the business cannot reward capital owners.
• Debt/Equity is not disclosed, which is worrying for a loss-making company with weak coverage.

AI Analysis

Friends, when I look at a cement company, I look for a simple business with pricing power and prudent finances. Shiva Cement fails that test. Yes, sales grew 118.56%, but those sales generated a net loss of ₹34 Cr in the latest quarter. Turnover without profit is a path to burnout. The company's ROE is a catastrophic -78.44%, meaning it is eroding shareholders' equity at a startling pace. Book value stands at just ₹6.78 per share, yet the market asks ₹47.05, a price-to-book of 6.94. As Graham said, the stock is not a bargain; it is a premium on a shrinking asset base. With P/E effectively zero because there is no 'E', and no dividend, I derive no satisfaction from owning this. The ROCE of -2.97% tells me operations don't even cover capital costs. Even the 52-week range, from ₹12.05 to ₹47.05, shows speculative frenzy rather than fundamental building. Some may call the 118% growth a sign of a turnaround; I call it an expensive experiment with shareholders' capital. The Piotroski score of 6/9 gives a flicker of hope, but that's a balance-sheet mechanics test, not a profitability test. For me, the only sensible price is one that gives a margin of safety over downside, not one that prices in perfect success. Until I see consistent positive earnings, a controlled balance sheet, and a sensible valuation, I'll keep out. In Buffett's words: 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' This is not a wonderful company.

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