Shri Balaji (544074)

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

Key Financials

Strengths

• Very low P/E of 8.50 with a PEG of 0.26, suggesting the market is pricing in little growth despite strong recent results.
• Profit growth of 52.49% far outpacing sales growth of 11.88%, indicating operating leverage and improving profitability.
• ROCE of 15.16% shows decent capital efficiency for an industrial products company.
• Piotroski F-Score of 7/9 points to generally healthy fundamentals across profitability, leverage and efficiency signals.

Concerns

• Zero dividend yield means investors rely entirely on capital appreciation and reinvestment by management.
• Critical data is missing — book value, ROE, debt/equity, and promoter holding — making a full Graham-style margin-of-safety check impossible.
• Latest quarter net margin is only about 7.3% (₹3 crore profit on ₹41 crore sales), leaving limited cushion if costs rise or demand weakens.
• Stock has already rallied from ₹60.30 to ₹234.65, near its 52-week high, so the easy money may have been made.

AI Analysis

Let me look at Shri Balaji the way Graham would: a small industrial products company at ₹234.65 with a market cap of ₹191 crore, trading at a P/E of only 8.5. That is a cheap multiple. The growth column catches my eye: sales up 11.88%, but profits up 52.49%. Such divergence suggests operating leverage — each incremental rupee of revenue is dropping more to the bottom line. With a PEG of 0.26, the market is paying very little for that growth. ROCE at 15.16% is respectable, and a Piotroski score of 7 out of 9 gives me some comfort regarding earnings quality and financial health. In the latest quarter, sales of ₹41 crore produced ₹3 crore net profit, a thin 7.3% margin; in industrial products, that is not unusual, but it leaves little room for error. My discipline demands a margin of safety. The stock has already run from ₹60.30 to its current 52-week high of ₹234.65 — a multibagger move. That does not by itself make it a bad buy, but it raises the bar; I am buying the business, not the tape. The absence of book value, ROE, debt/equity and promoter holding data is a red flag for a Graham-style investor. You cannot compute asset protection without those numbers. The dividend yield is zero, so the return depends entirely on management's ability to keep compounding. If the 52% profit growth is sustainable, the P/E of 8.5 is too cheap; if it is a cyclical upturn, today's price may be fair. I would call this a fast grower on a reasonable price, but only for an investor who can dig deeper into the balance sheet. The numbers I can see are good; the numbers I cannot see worry me.

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