Sharp Investment (538212)

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

Key Financials

Strengths

• Trades at a 32% discount to stated book value of ₹1.18 per share, with P/B of 0.68.
• Market cap of ₹20 Cr is below implied equity of roughly ₹29.5 Cr, offering a potential asset-backing cushion.
• No earnings premium is being paid, so the price already assumes a conservative view of the balance sheet.
• At ₹0.80, the stock is at its 52-week high, suggesting recent market interest in this overlooked shell-like NBFC.

Concerns

• No meaningful revenue: latest quarter sales are ₹0 Cr, and profit growth is -300%, indicating a worsening loss.
• ROE of -0.36% and ROCE of 0.00% show the equity is generating no return for shareholders.
• Piotroski F-Score of 2/9 signals very weak financial health and deteriorating fundamentals.
• Promoter holding is undisclosed, debt/equity is N/A, and there is no dividend, leaving asset quality and governance unclear.

AI Analysis

At ₹0.80, with a book value of ₹1.18, Sharp Investment trades at a 32% discount to stated net worth. That would grab Graham's attention. But a cheap balance sheet is only a starting point; I must verify that the stated assets are real, that the capital can earn a return, and that management is shareholder-minded. On the second point, this NBFC fails badly: latest quarter sales are ₹0 Cr, net profit is ₹-0 Cr, return on equity is -0.36%, and ROCE is 0.00%. The equity is not working. Profit growth of -300% tells me the small loss has worsened, and the reported P/E of 0.00 is meaningless because earnings are absent. The Piotroski F-Score of 2/9 is a loud warning: this is not a financially strengthening company. Debt/equity is not available, so I cannot judge leverage; promoter holding is undisclosed, so I cannot assess skin in the game; and there is no dividend to compensate me while I wait. Insurance? No. A wonderful business? Definitely not. This is a cigar-butt asset play if it is anything. At ₹20 Cr market cap against roughly ₹29.5 Cr of stated equity, the market is already applying a 32% haircut. If the assets are worth close to book, there is upside; if they are impaired, the 'value' disappears. The 52-week range of ₹0.29 to ₹0.80 also shows the stock has already moved; the easy money may have been made. I would treat this only as a speculative, small position after independent audit of every asset. Price is what you pay; value is what you get. Today, I cannot confidently say what value is.

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