Shreeji Translog (540738)

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

Key Financials

Strengths

• Profit growth of 141.18% indicates a sharp earnings recovery from a low base.
• Piotroski F-Score of 7/9 points to improving fundamentals and operational efficiency.
• Sales growth of 8.33% shows the business is at least expanding steadily.
• Latest quarter is profitable, with ₹1 crore net profit on ₹58 crore sales.

Concerns

• ROE of 4.74% and ROCE of 4.63% are far below what a premium valuation should command.
• P/E of 20.99 and P/B of 2.88 offer no margin of safety given low returns.
• Net margin is below 2% in the latest quarter, indicating very thin profitability.
• No dividend, unavailable debt/equity data, and a 4.5x rally from the 52-week low add risk.

AI Analysis

Shreeji Translog is a small logistics provider with a market cap of ₹175 crore, but the numbers do not excite me. In the latest quarter, it earned ₹1 crore on ₹58 crore of sales—a net margin below 2%. That is a very thin business. The annual figures show return on equity of 4.74% and ROCE of 4.63%; as a shareholder, I would demand far more from a business trading at 2.88 times book value. Book value is ₹8.56, while the price is ₹24.62, so I am paying a rich premium for mediocre capital returns. The profit growth of 141% looks spectacular, but the base is tiny, and the latest quarterly profit is just ₹1 crore. Sales growth is only 8.33%, so this is not a compounder hiding in plain sight. The PEG ratio of 0.28 is misleading when current profitability is so low. I do not pay 20.99 times earnings for a business earning under 5% on equity. On the positive side, the Piotroski F-Score of 7/9 suggests the balance sheet and operating efficiency have improved recently. That is a point in its favour. But debt/equity is not available, and dividend yield is zero, so I have limited evidence of financial strength or shareholder friendliness. The 52-week range of ₹5.42 to ₹24.62 shows the stock has already run up more than fourfold. At today's price, there is no margin of safety. A true value investor waits for a better price or stronger evidence of durable profitability. I would put this on my watchlist, not in my portfolio.

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