Shree Securities (538975)

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

Key Financials

Strengths

• Piotroski F-Score of 7/9 suggests the business is not obviously deteriorating on the available balance-sheet metrics.
• Positive ROE of 7.37% and ROCE of 5.98% mean capital is not being destroyed, though returns are modest.
• PEG of 0.16 could signal undervaluation if the market has overestimated the absence of future growth and earnings revive.
• Trading at the top of its 52-week range (₹0.35, range ₹0.19–₹0.35) shows recent buying interest.

Concerns

• Latest quarter sales and net profit are both ₹0 Cr, so current earning power is not visible.
• Zero sales and profit growth, plus a 0.00% dividend yield, offer no compounding or income cushion.
• P/E of 24.18 and P/B of 2.92 are high relative to a 7.37% ROE and a stagnant business, leaving no margin of safety.
• Promoter holding and debt-equity details are unavailable, making governance and leverage risk impossible to assess.

AI Analysis

Let me look at Shree Securities the way Graham would: a stock is an ownership stake in a business, not a ticker to trade. At ₹0.35, the market is valuing this NBFC at ₹29 Cr, while book value is only ₹0.12 per share, so I am paying 2.92 times stated net worth. The trailing P/E of 24.18 is not expensive for a great franchise, but this is not a great franchise. ROE is 7.37% and ROCE is 5.98% — ordinary numbers that could be matched by a well-run bank without the liquidity risk of a tiny micro-cap. Sales growth and profit growth are both 0.00%, and the latest quarter shows zero sales and zero net profit. There is no dividend to reward me while I wait. The Piotroski score of 7/9 gives me some comfort on financial health, but the reported PEG of 0.16 seems almost meaningless when growth is zero; a PEG must be backed by credible future earnings. I also have no promoter holding data and no debt-equity detail, so the balance sheet cannot be properly audited by an outsider. In a small NBFC, the first question is not 'can the stock rise?' It is 'does the company earn honest returns on its capital?' Here, the returns are weak and the current quarter is empty. The stock trades at its 52-week high, but that only tells me sentiment is positive today, not that intrinsic value is compounding. Graham would demand a margin of safety; paying nearly three times book for a stagnant, zero-dividend business gives me none. I need evidence of real earning power, a cleaner balance sheet, and a price closer to book value before I would touch this. It is a possible turnaround, not a proven investment.

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