Shanti Gold (SHANTIGOLD)

FairStock Score: 67/100 — STEADY

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

Key Financials

AI Analysis

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

Shanti Gold passes my first filter: I can roughly understand what it does—buying and selling gold jewellery—even if the economics are not always simple. What catches my eye is the combination of astonishing growth and a modest price. Sales rose 110.06% and profits 127.62%, yet the market prices it at only 11.74 times earnings. That makes the PEG look absurdly low at 0.10. In Buffett-Graham terms, we are being asked to pay ₹209.50 for a business earning roughly ₹17-18 per share on rapidly growing sales. But a low P/E only matters if the quality is there. The balance sheet is respectable: debt/equity of 0.34 and ROCE of 26.19%. The Piotroski score is 7/9, so the underlying financials look solid, not manipulated. Promoter holding is 74.89%, which aligns owners with minority shareholders, though it leaves a small float. Still, I have to play devil's advocate. A 110% sales growth rate is not normal for a jewellery business—it may reflect a recovery, a gold-price spike, or an exceptional order flow. Graham taught me to treat temporary prosperity as suspect. There is no dividend; the yield is zero, so as a minority shareholder my return depends entirely on continued growth and capital gains. Book value is ₹90.23, so I am paying 2.32 times book—not a deep-value margin of safety. And with ROE not disclosed, I cannot fully judge how efficiently equity is being turned into profit. The latest quarter shows ₹637 Cr sales and ₹40 Cr net profit, a margin of roughly 6.3%; that is okay, but not spectacular. If these growth rates continue, Shanti Gold is cheap. If they revert to the industry mean, the current price leaves little room for error. I would wait for evidence that demand is durable, and keep a close eye on gold prices and working capital. This belongs in the 'fast grower' box, not the 'deep value' box.

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