Shalby (SHALBY)

FairStock Score: 10/100 — RISKY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Looking at Shalby, I try to see an attractive business before a stock. A hospital can be a good business, but this one doesn't yet earn its keep. The company's ROE is only 6.76% and ROCE is 6.12% — far below what I'd demand from a business trading at ₹1,672 crore market cap. The most striking number is the P/E of 207.48. In the latest quarter, Shalby made just ₹1 crore net profit on ₹272 crore sales: that's a razor-thin margin. Yes, profit leaped 197.79%, but from a low base. One crore quarterly profit cannot justify a 207 P/E or even a 1.54 P/B. Book value of ₹103.66 per share is there, but weak returns on that book mean growth in book value will be slow. Sales actually fell 1.27% last year, so this is not a growth story; it is a turnaround story, and turnarounds are the kind of business I avoid unless the price offers a margin of safety. The balance sheet is manageable with debt/equity at 0.53, and promoter holding at 74.33% suggests skin in the game. Dividend yield is zero, unlike a Graham compounder. Piotroski score of 6/9 is mildly encouraging, but the FairStock score of 18/100 is a warning. I would need sustained improvement in margins, positive same-hospital sales, and an honest management before I risk capital. At this price, I'm a spectator. In the end, a high multiple on negligible earnings is not value; it is hope.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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