Shri Venkatesh (543373)

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

Key Financials

Strengths

• Sales growth of 80.29% and profit growth of 99.72% show exceptional recent momentum.
• Piotroski F-Score of 7/9 suggests solid financial health and operational efficiency.
• PEG of 0.24 indicates that, relative to its growth rate, the current P/E of 21.97 may not be excessive.
• ROCE of 14.57% and ROE of 13.38% are respectable, especially for a small-cap edible oil player.

Concerns

• Current price of ₹134.50 is significantly below the 52-week range of ₹185.75-₹333.80, a sharp market derating that demands scrutiny.
• Edible oil is a commoditized, low-margin business; latest quarter net margin is only ~2.5%.
• P/B of 10.83 is very expensive versus book value of ₹12.42, leaving little asset backing for downside protection.
• Promoter holding and debt/equity are N/A, raising governance and leverage visibility concerns.

AI Analysis

Looking at Shri Venkatesh, I'm immediately struck by the extraordinary growth on paper: sales up 80.29%, profits up 99.72%. That's the kind of momentum that catches any value investor's eye. But my mentor Ben Graham taught me to look through the windshield, not the rearview mirror. This is edible oil—a commodity business where pricing power is fleeting. A 2.5% net margin in the latest quarter (₹14 Cr on ₹556 Cr) leaves very little room for error. The P/E of 21.97 is not outrageous if the growth is durable, and the PEG of 0.24 suggests the market is pricing in much lower future growth. Yet the P/B of 10.83 is rich for a business in a low-margin, fiercely competitive sector. The Piotroski score of 7/9 is reassuring—financial health appears solid. But I cannot ignore the price action: at ₹134.50, the stock is way below its 52-week range of ₹185.75-₹333.80. That divergence between reported profits and market price is a yellow flag; something may be broken in the business or the market is anticipating trouble. ROE and ROCE at 13.38% and 14.57% are decent, but not the 20%+ that defines a great compounding machine. Dividend yield of 0.40% means I'm not being paid to wait. Without promoter holding or debt-equity data, I lack the full picture of corporate governance and leverage. In true Graham style, I need a margin of safety. This stock has growth, but at a price that could unwind if quarterly momentum slows. I'd need to understand the source of the growth—capacity expansion, pricing tailwind, or acquisitions—before treating it as a predictable compounding machine. For now, it's a fast grower I'd watch closely, not one I'd anchor my portfolio to.

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