Shalby (SHALBY)
TurnaroundFairStock Score: 10/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹152.91 |
| Market Cap | ₹1,640.71 Cr |
| P/E Ratio | 47.34 |
| ROCE | 6.12% |
| ROE | 3.47% |
| Dividend Yield | 0% |
| Profit Growth | -2.45% |
| Debt/Equity | 0.59 |
| Sales Growth | 6.97% |
| Promoter Holding | 74.33% |
| 52-Week Range | ₹125.82 — ₹274.7 |
| Sector | Healthcare Services |
| Book Value | ₹94.39 |
Strengths
- Promoter holding of 74.33% demonstrates strong skin in the game and alignment.
- Debt/equity at 0.53 is moderate; no excessive leverage.
- P/B of 1.54 against book value ₹103.66 means not paying an extreme asset premium.
- Piotroski F-Score of 6/9 signals some recent improvement in financial health.
- Profit growth of 197.79% shows earnings are rebounding from a depressed base.
Concerns
- P/E of 207.48 is unjustifiable when latest quarter profit is only ₹1 Cr on ₹272 Cr sales.
- Sales growth is negative at -1.27%; top line is shrinking.
- ROE of 6.76% and ROCE of 6.12% are poor returns on capital.
- Zero dividend yield offers no cash return while valuation is expensive.
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer