Shivalik Bimetal (SBCL)

FairStock Score: 45/100 — MIXED

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

Key Financials

Strengths

• High return on equity of 22.66% and ROCE of 25.57% show strong capital efficiency.
• Low debt-to-equity of 0.13 gives financial stability and downside protection.
• Profit growth of 25.38% significantly outpacing sales growth indicates margin improvement.
• Piotroski F-Score of 7/9 suggests sound recent fundamentals.
• Latest quarterly margin is strong: ₹22 crore net profit on ₹134 crore sales.

Concerns

• Valuation is expensive at P/E of 28.24, P/B of 8.34, and PEG of 1.65.
• Sales growth of only 8.88% may not justify such a high multiple without acceleration.
• Promoter holding of 33.17% is low, raising questions about long-term alignment.
• Stock has been highly volatile, with a 52-week range of ₹368.60 to ₹1,105.05; FairStock Score is a risky 34/100.

AI Analysis

Shivalik Bimetal strikes me as a high-quality business, but my mind keeps returning to price. The company earns an excellent 22.66% return on equity and 25.57% on capital employed, with almost no leverage—debt-to-equity is just 0.13. The latest quarter shows ₹134 crore in sales and ₹22 crore in net profit, which is a strong margin. Profit growth of 25.38% is far ahead of sales growth of 8.88%, suggesting margins are expanding, perhaps from operating leverage or pricing power. The Piotroski score of 7/9 also supports a fundamentally sound recent financial picture. But Graham would remind me that no matter how good the business, value lies in price. At ₹524.30, the stock trades at 28.24 times earnings and 8.34 times book value. That is rich for a company whose top line grows less than 9%. Even with 25% earnings growth, the PEG ratio is 1.65, so the growth is not exactly cheap. The FairStock Score of 34/100 flags risk, and the 52-week range of ₹368.60 to ₹1,105.05 shows this is a volatile stock. Promoter holding is only 33.17%, which is low by Indian standards and worth watching. As a value investor, I own businesses, not tickers. This looks like a decent franchise with a strong balance sheet, but I need a margin of safety. At this price, I am not getting it. I would wait for a better price or evidence that sales growth has caught up with profit growth. If the business can keep compounding while the price becomes more reasonable, it could be an interesting holding. Today, it belongs on my watchlist, not in my portfolio.

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