SHRI NIWAS L& F. (538897)

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

Key Financials

Strengths

• Book value of ₹10.48 per share provides a tangible balance-sheet anchor, though price is 1.82x book.
• Piotroski F-Score of 6/9 suggests some historical financial health and operational resilience.
• ROE of 13.33% is respectable if the underlying earnings power is real and sustainable.
• Small market cap of ₹8 Cr gives scope for a potential restructuring or asset unlock, if ever seriously pursued.

Concerns

• Latest quarter shows sales of ₹0 Cr and net profit of ₹0 Cr, meaning no current operating earnings.
• P/E of 0.04 is internally inconsistent with ROE, book value, and profit figures, indicating unreliable data.
• ROCE of -55,664.59% signals severe erosion or negative capital employed, not a healthy franchise.
• No dividend, no growth, no promoter holding data, and no debt-equity disclosure create a serious governance and visibility risk.

AI Analysis

Let me begin with what every investor must admit: I cannot value what I cannot see. At ₹19.12, this tiny NBFC has a market cap of only ₹8 Cr and a book value of ₹10.48 per share, so I am paying an 82% premium to book. Normally, I am willing to pay such a premium only for a business with a durable competitive advantage and clear earnings power. Here, the latest quarter shows sales of ₹0 Cr and net profit of ₹0 Cr. Zero. A business with no revenue and no profit is not a business in Graham's sense; it is a container of assets and possibilities. The 13.33% ROE and Piotroski F-Score of 6/9 look okay at first glance, but they conflict violently with the reported P/E of 0.04, which would imply earnings of ₹200 Cr against a ₹8 Cr market cap. That cannot be true. When numbers contradict each other, I assume the worst: window dressing, accounting quirks, or simply poor data. ROCE of -55,664.59% only deepens my concern; capital employed has been so eroded that returns on it become meaningless. There is no dividend, no growth, no promoter holding disclosure, and no debt-equity information. This is not an information edge; it is an information vacuum. Mr. Market has marked the stock up to its 52-week high, but enthusiasm is not evidence. I would need to understand the loan book, asset quality, and why profit vanished before considering even the asset play. At 1.82 times book with zero current earnings, buying here is an act of faith, not analysis. Price can double, but if book value is impaired, there is no floor. I will wait, or I will walk away. My temperament says pass.

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