INDIA SHELTE FIN (INDIASHLTR)

FairStock Score: 46/100 — MIXED

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

Key Financials

Strengths

• Sales growth of 28.14% and profit growth of 29.20% show strong compounding.
• ROE of 19.01% combined with P/E of 16.86 and PEG of 0.59 indicates growth at a reasonable price.
• Piotroski F-Score of 7/9 suggests solid earnings quality and financial health.
• Promoter holding of 47.60% aligns management interests with minority shareholders.
• Latest quarter net profit of ₹124 Cr on sales of ₹390 Cr reflects a healthy profit margin.

Concerns

• P/B of 3.49 is rich for a leveraged finance company, leaving less book-value cushion.
• Debt/Equity of 1.88 increases sensitivity to interest rates and credit deterioration.
• Dividend yield of only 0.68% offers minimal income support.
• FairStock Score of 51/100 and the 52-week range of ₹640.25-₹968.75 signal mixed sentiment and volatility.

AI Analysis

India Shelter Fin is the kind of business that catches my attention because it combines growth with reasonable price. Sales grew 28.14% and net profit grew 29.20%, while return on equity is 19.01%. Those are strong numbers. In Graham's language, earnings power is growing; in Buffett's language, the engine is compounding at a good clip. The P/E of 16.86 is not excessive, and with 29% profit growth, the PEG ratio is only 0.59. That is a classic growth-at-reasonable-price signal. The Piotroski F-score of 7 out of 9 is reassuring. It tells me the reported profits are backed by solid fundamentals, not aggressive accounting. Promoter holding of 47.60% also means the people running the business have a large stake in its success. The latest quarter shows net profit of ₹124 Cr on sales of ₹390 Cr, so the margin is healthy. Still, I must be careful. Price-to-book of 3.49 is not cheap for a finance company. Since the business lends money, book value is the foundation, and paying more than three times book leaves less margin of safety. Debt-to-equity of 1.88 is expected for a housing finance company, but it is also a source of risk if interest rates rise or credit quality weakens. The dividend yield of only 0.68% means I cannot lean on income while I wait. And FairStock score of 51/100 is mixed, so this is not a perfect setup. My approach is to buy good businesses at sensible prices. India Shelter Fin is a fast grower with solid economics and a valuation that is not unreasonable, but I would want the growth to continue and leverage to stay under control. I will watch asset quality and debt levels closely before committing a large amount of capital.

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