Sharvaya Metals (544506)

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

Key Financials

Strengths

• Explosive growth: sales grew 117.79% and profits grew 128.47%
• Low headline valuation with P/E of 8.02 and PEG of 0.07
• Exceptional ROCE of 65.49% signals efficient capital use
• Piotroski F-Score of 7/9 suggests reasonable earnings quality
• Latest quarter net margin of roughly 10% on ₹90 Cr sales

Concerns

• Critical data missing: book value, debt/equity, promoter holding, and ROE are not available
• Commodity-linked aluminium, copper and zinc business is inherently cyclical
• Zero dividend yield means investors depend entirely on future capital gains
• Tiny ₹140 Cr market cap makes it a high-risk small-cap with limited disclosure

AI Analysis

At ₹140, Sharvaya Metals carries a market cap of just ₹140 crore and a trailing P/E of 8.02. On its face, this looks like the classic Graham bargain: modest multiple, quarterly sales of ₹90 crore, net profit of ₹9 crore, and trailing profit growth of 128.47%. Sales are up 117.79%, and ROCE is a stunning 65.49%. The Piotroski F-Score of 7/9 also tells me the earnings are not purely paper froth; the company is generating healthy operating signals. But I have to pause. This is an aluminium, copper and zinc products company. Commodity-linked businesses are often quoted at low P/Es when profits are near a cyclical peak. A 128% jump in profit looks wonderful, but commodities can reverse just as quickly. With a PEG of 0.07, the market is pricing in extraordinary continuation of growth; I treat PEG that low as a warning to verify, not a green light. My problem is data. I do not have book value, debt-to-equity, promoter holding, or a stated ROE. That means I cannot judge the balance sheet or whether management has skin in the game. The dividend yield is zero, so I am asked to trust entirely in reinvestment and future compounding. In a small-cap metal products business without a clear moat, that is a big ask. If the 65.49% ROCE is sustainable and the growth is genuine, ₹140 crore is not expensive. But a value investor must demand proof. I will not invent a margin of safety where the facts are missing. This is a fast grower, and fast growers can punish you if the cycle turns. I would want three more quarters of this performance, a clean balance sheet, and clarity on ownership before committing my capital.

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