Shanthala FMCG (SHANTHALA)

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

Key Financials

Strengths

• Promoter holding at 61.91% keeps management aligned with public shareholders.
• Profit growth of 71.43% and PEG of 0.24 point to possible earnings momentum at current valuation.
• Piotroski F-Score of 6/9 suggests moderate financial health.
• Latest quarter net profit of ₹1 Cr on ₹26 Cr sales shows positive, though thin, profitability.
• Stock price near the lower end of its 52-week range offers a potential entry point if fundamentals stabilize.

Concerns

• Sales growth is flat at -0.12%, so profit growth is not driven by top-line expansion.
• ROCE of just 5.98% indicates weak returns on invested capital.
• No dividend yield means shareholders get no cash income while waiting for price appreciation.
• Book value, debt/equity, and ROE are unavailable, limiting balance-sheet assessment.

AI Analysis

I approach Shanthala FMCG the way Graham taught me: first ask what I am buying, then at what price. Here, I am buying a small cigarette and tobacco company with a market cap of only ₹22 crore, at ₹26.05 per share. The stock trades at 17.12 times earnings, which is not demanding, but it is not obviously cheap either. Earnings rose 71.43%, making the PEG look attractive at 0.24, but that growth rings hollow when sales are flat at -0.12%. As Buffett says, you can’t compound wealth without revenue growth. A 5.98% ROCE tells me the business is not earning a particularly good return on capital, and with a zero dividend yield, I receive no income while I wait. Promoter holding of 61.91% is encouraging—owners are aligned with minority shareholders. The Piotroski score of 6/9 is a small positive, suggesting some fundamental repair. But I cannot complete my analysis without book value, debt/equity, or ROE. That absence of data is itself a warning: if numbers are missing, margin of safety is missing. The latest quarter shows ₹26 crore sales and ₹1 crore net profit—a thin margin of roughly 3.8%. The 52-week range, ₹17.05 to ₹46.90, shows how volatile this penny stock can be. I would not call this a wonderful business. At best it is a possible turnaround, but I need evidence of sustainable growth, better capital efficiency, and a cleaner balance sheet before putting money to work.

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