Sirohia & Sons (538667)

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

Key Financials

Strengths

• Piotroski F-Score of 6/9 suggests the company is not in severe financial distress.
• Reported profit growth of 633.33% shows earnings have improved from an earlier low base.
• Current price of ₹12 is at the top of the 52-week range of ₹5–₹12, indicating recent market strength.
• Small market cap of ₹12 crore leaves room for future upside if operations genuinely revive.

Concerns

• Latest quarter shows sales of ₹0 Cr and net profit of ₹0 Cr, implying the operating engine is stalled.
• Sales growth is 0.00%, so the 633% profit growth likely stems from a low or one-off base, not a growing business.
• ROCE is just 0.25%, reflecting very poor return on capital employed.
• No book value, debt/equity, or promoter holding data is available, making a Graham-style safety check impossible.

AI Analysis

At first glance, the 633.33% profit growth and PEG of 0.03 seem cheap. But a Buffett-style investor knows that growth without a business behind it is just a number. Sirohia & Sons is a trading and distribution business with a market cap of ₹12 crore, yet its latest quarter shows sales of ₹0 crore and net profit of ₹0 crore. Annual sales growth is zero. Where is this profit coming from? With ROCE of just 0.25%, the company is earning a quarter of a rupee for every hundred rupees of capital employed—hardly a durable moat. The P/E of 21.48 is not expensive for a great company, but it is very expensive for a company that is not producing current sales. The Piotroski F-Score of 6/9 is the only mildly encouraging sign, but it cannot replace a real operating franchise. I also have no book value, no debt-equity ratio, and no promoter holding to judge financial strength or management commitment. A zero dividend makes me wait without any compensation. This may look like a small turnaround story, but the latest quarterly numbers have not confirmed it. In Graham's words, an investment operation requires thorough analysis and safety of principal. Here, the analysis is impossible with so many missing data points, and the safety is not evident. I would rather let this microcap prove itself with several quarters of real sales and sustainable profits. Until then, the wise action is to watch, not to buy.

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