Shelter Pharma (543963)

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

Key Financials

Strengths

• Sales growth of 38.36% and profit growth of 27.12% show strong momentum
• P/E of 7.23 is inexpensive relative to growth, with PEG ratio of 0.22
• ROCE of 24.48% indicates efficient use of capital
• Piotroski F-score of 7/9 points to a sound financial position
• Latest quarter sales of ₹33 Cr and net profit of ₹5 Cr confirm operational profitability

Concerns

• Book value, ROE, debt/equity, and promoter holding are not available, limiting balance sheet assessment
• Small market cap of ₹60 Cr with no visible moat from product or regulatory data
• Share price is at its 52-week high, and dividend yield of 0.96% is low, so returns depend on continued growth
• A single quarter with ₹5 Cr profit is not enough to prove sustainability of margins

AI Analysis

At ₹51.60, Shelter Pharma is small — market cap of ₹60 Cr — and that is just the kind of place I like to hunt, provided the numbers make sense. The starting point is attractive: P/E of 7.23 with sales growing 38.36% and profit growing 27.12%. That works out to a PEG of 0.22, which is remarkably cheap if those growth rates are repeatable. A ROCE of 24.48% is well above what most Indian pharma companies earn, and the Piotroski F-score of 7 out of 9 suggests the financial position is improving rather than deteriorating. The latest quarter shows sales of ₹33 Cr and net profit of ₹5 Cr, so the business is generating real earnings, not just accounting hope. But I have to be careful. The lack of book value, ROE, and debt/equity data disturbs me. Benjamin Graham always said an investor cannot judge a business on price alone; he needs to know the shareholder's equity and the liabilities. Without those, I am flying blind on balance sheet quality. Also, a ₹60 Cr pharma company rarely has the deep moat of a large drugmaker. I know nothing from these figures about product portfolio, patents, or regulatory approvals, so I cannot assume pricing power or brand strength. The share price is at the 52-week high of ₹51.60, having nearly doubled from ₹26.50. That means the market already recognises something. At 0.96% dividend yield, income is not the reason to own it. This is a fast grower trading at a low multiple, not a safe stalwart. I would want proof that growth is durable before committing serious capital. If the growth continues and balance sheet stays clean, this could be an interesting small cap. If not, low P/E is a trap.

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