Share Samadhan (544251)

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

Key Financials

Strengths

• ROCE of 21.95% indicates decent return on capital employed while operations run.
• Market cap of ₹59 Cr with P/E of 22.29 implies there is still a positive trailing earnings base.
• Latest quarterly sales of ₹4 Cr show some ongoing business activity.
• Being a small financial services company, it may have niche opportunities if it stabilises.

Concerns

• Profit growth down 61.90% and latest quarter net profit at ₹0 Cr signal severe earnings deterioration.
• Sales growth of -14.41% shows shrinking top-line demand.
• Piotroski F-Score of 3/9 indicates weak financial health and poor fundamentals.
• P/E of 22.29 is expensive for a declining earner, with zero dividend to compensate.

AI Analysis

Share Samadhan is exactly the kind of small, thinly-covered financial services company I would normally walk past. The numbers do not give me confidence. At ₹47.77, the market capitalization is ₹59 crore, which means the market is valuing the company at over 22 times earnings. But those earnings are collapsing: profit growth is down 61.90%, and the latest quarter shows sales of only ₹4 crore with net profit of zero. The P/E ratio is therefore based on past earnings that may not repeat. Sales are also shrinking at 14.41%, so there is no top-line offset. On the positive side, ROCE of 21.95% is respectable, and it suggests that the capital employed is producing a good return while the business is running. But a Piotroski F-Score of only 3 out of 9 worries me; it points to weak financial health and deteriorating fundamentals. There is no dividend, so the small shareholder gets no cash return while waiting for a recovery. I have no book value, debt/equity, or promoter holding data, so I cannot judge the balance sheet or management alignment. In Graham's language, this is speculative. You are paying a high multiple for shrinking earnings, in a company with insufficient disclosure. The only way I would look further is if the next few quarters show sales stabilising, net profit returning, and positive signs of a genuine turnaround. Until then, the margin of safety is absent. I would rather miss this opportunity than overpay for hope.

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