Shlokka Dyes (544582)

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

Key Financials

Strengths

• ROCE of 29.14% indicates strong capital efficiency in the underlying business.
• Trailing P/E of 7.32 looks inexpensive if earnings can stabilise.
• Latest quarter still reported a positive net profit of ₹1 crore, despite severe pressure.
• Small market cap of ₹49 crore leaves room for a meaningful recovery if operations improve.

Concerns

• Sales growth of -26.43% and profit growth of -69.61% show severe deterioration.
• Piotroski F-Score of 3/9 signals weak fundamental health across profitability, leverage, and efficiency.
• Critical data is missing: book value, ROE, debt/equity, promoter holding, and 52-week range, so margin of safety cannot be assessed.
• Latest quarter net margin is only about 3% on ₹31 crore sales, with no dividend paid.

AI Analysis

At ₹22.74, Shlokka Dyes trades like a forgotten small-cap. Market cap ₹49 crore and P/E of 7.32 look tempting, but Graham taught us that a low multiple on falling earnings is often an illusion. The numbers tell a cautionary tale: sales have declined 26.43% and profits have collapsed 69.61%. In the latest quarter, revenue was ₹31 crore but net profit was just ₹1 crore—a thin margin of roughly 3%. This is not the kind of earning power I want to capitalise at 7 times. The one bright spot is ROCE of 29.14%, which suggests the underlying business, at its best, is capital efficient. But efficiency means little if demand is shrinking. The Piotroski F-Score of 3 out of 9 reinforces my worry: the company is failing on multiple fundamental health tests. I cannot compute a margin of safety without book value, ROE, or debt/equity data. No promoter holding, no dividend, no 52-week context—only fragments. As an investor, I demand to see the balance sheet and understand the debt burden before even thinking about buying. Shlokka might be a specialty chemical play, but that is not a moat. A moat is pricing power, scale, or switching costs. Falling sales and a 69% profit drop suggest none of those are present today. This could be a cyclical low, or a declining business. The cheap P/E alone is not enough. I would keep it on the watch list, not in the portfolio, and wait for evidence of stabilisation and honest disclosure.

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