Shree Refrigerat (544458)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹178.55 |
| Market Cap | ₹636.18 Cr |
| P/E Ratio | 103.28 |
| ROCE | 17.83% |
| ROE | —% |
| Dividend Yield | 0% |
| Profit Growth | -82.19% |
| Debt/Equity | — |
| Sales Growth | -1.12% |
| Sector | Industrial Manufacturing |
Strengths
- ROCE of 17.83% indicates some capital efficiency remains despite the earnings slump.
- Latest quarter is still profitable: ₹1 Cr net profit on ₹50 Cr sales.
- Sales decline is mild at -1.12%, giving a relatively stable revenue base.
- No dividend obligation means cash is retained internally for any operational restructuring.
Concerns
- Extremely expensive at P/E of 103.28 with profit growth down 82.19%.
- Piotroski F-Score of 3/9 signals weak financial health.
- Latest quarter net margin is just 2%, leaving a very thin profit cushion.
- Missing book value, debt/equity, and promoter holding data prevents a proper margin-of-safety assessment.
AI Analysis
At ₹178.55 with a market cap of ₹636 Cr, Shree Refrigerat is being priced for perfection, but the numbers show a business under stress. A P/E of 103.28 means I am paying over a hundred rupees for every one rupee of profit. That is the opposite of Graham's margin of safety. Profit growth has collapsed by 82.19%, sales are down 1.12%, and the latest quarter earned just ₹1 Cr on ₹50 Cr of sales—a 2% net margin. The Piotroski F-Score of 3/9 reinforces weak fundamentals. I cannot ignore ROCE of 17.83%, which suggests some capital efficiency remains, but without book value, debt/equity, or promoter holding data, I cannot judge the balance sheet. There is no dividend, so shareholders are dependent entirely on price appreciation. A FairStock Score of 0/100 declares this risky. In Buffett's framework, a wonderful business with poor economics is still a poor investment at the wrong price. This could be a turnaround situation if management proves the earnings decline is temporary and recovers margins, but the current price already assumes that recovery has happened. For a value investor, the right move is to wait—watch quarterly sales and profit margins, demand evidence of sustainable operations, and insist on a much lower price. Mr. Market must give me a bargain; here he is offering only hope at ₹178.55. I would rather miss a recovery than pay 103 times earnings for one.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer