Shashijit Infra. (540147)

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

Key Financials

Strengths

• Latest quarter sales of ₹4 crore show the business is still operating and generating revenue.
• Reported profit growth of 88.30% indicates some bottom-line improvement, albeit from a weak base.
• Piotroski F-Score of 5/9 is moderate, suggesting a few financial health indicators are positive.
• Positive book value of ₹1.55 provides a minimal accounting cushion, though the market price is far above it.

Concerns

• P/E is 0.00 and the latest quarter has a net loss, so there is no current earnings stream to value.
• ROE of -15.28% and ROCE of -12.28% show the company is destroying shareholder capital.
• Sales declined 21.31%, and the price-to-book at 4.50 offers no margin of safety versus book value of ₹1.55.
• Promoter holding and debt/equity are not disclosed, leaving critical governance and leverage risks unknown.

AI Analysis

At ₹6.97, Shashijit Infra carries a market cap of ₹36 crore. The first thing I look for is a dependable earnings stream; here, P/E is 0.00 because earnings are essentially absent. The latest quarter showed ₹4 crore sales and a near-zero net loss. Trailing sales have fallen 21.31%. A business whose revenue is shrinking and whose capital earns -15.28% ROE and -12.28% ROCE is not creating value. Book value is only ₹1.55, yet the market is asking ₹6.97, a P/B of 4.50. Graham would demand a margin of safety; paying 4.5 times book for a company earning negative returns offers none. The reported 88.30% profit growth is meaningless when starting from a loss or negligible profit. Promoter holding is unavailable; in a small-cap construction firm, that is a red flag because minority shareholders depend on promoter alignment. Civil construction is a competitive, low-moat business; with no pricing power and weak financials, I cannot identify a durable competitive advantage. The Piotroski F-Score of 5/9 suggests neither strong distress nor solid improvement. This looks like a speculative turnaround at best, but the price has already moved to the top of its 52-week range (₹2.21-₹6.97), so optimism is baked in. As a value investor, I prefer buying a wonderful business at a fair price, not a financially weak business at an expensive multiple. I would keep this on the watchlist, not in the portfolio, until profitability returns, the balance sheet is clarified, and the price gives me a margin of safety.

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