Supershakti Met. (541701)

FairStock Score: 11/100 — RISKY

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

Key Financials

Strengths

• Latest quarter is profitable: ₹329 Cr sales with ₹11 Cr net profit.
• Trailing P/E of 15.87 is not extreme for a company currently generating earnings.
• Share price has moved sharply from ₹180.05 to ₹550, showing strong market interest.
• A small 0.20% dividend yield indicates at least some cash return to shareholders.

Concerns

• Sales growth and profit growth are both 0.00%, leaving no evidence of expansion.
• ROCE is 0.00% and Piotroski F-Score is only 2/9, pointing to weak financial health.
• Book value, ROE, and debt/equity are unavailable, so balance-sheet risk cannot be assessed.
• Trading near the top of the 52-week range after a steep rally leaves little margin of safety in a cyclical industry.

AI Analysis

At ₹550, Supershakti Met has a market cap of ₹634 crore and a trailing P/E of 15.87. For a steel product company, that multiple is not obviously cheap, especially when the shares have already risen from ₹180.05 to ₹550.00 in the 52-week range. The latest quarter shows sales of ₹329 crore and net profit of ₹11 crore, translating to a thin margin of roughly 3.3%. That may look respectable for a commodity-linked business, but I focus on what can be normalized over a cycle. Here sales growth and profit growth are both zero, ROCE is reported at 0.00%, and the Piotroski F-Score is a weak 2/9. These are red flags. A company with a 2/9 F-score is not generating the financial improvements I look for. Without book value, ROE, or debt/equity data, I cannot assess the true balance-sheet strength, which is essential in a capital-intensive sector like iron and steel. The 0.20% dividend yield offers almost no compensation while I wait. Graham would say price is what you pay, value is what you get. At 15.87 times earnings, I am not getting a margin of safety for a cyclical business with zero growth and poor profitability signals. The market is paying a rich price after a sharp rally. I would rather wait for a better price, or for evidence of improving returns on capital, before committing. This is a cyclical stock dressed in a growth-like valuation, and that is not a combination I wish to own.

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