Sharda Cropchem (SHARDACROP)

FairStock Score: 34/100 — RISKY

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

Key Financials

AI Analysis

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

Let me look at Sharda Cropchem the way I'd inspect any business. It earns a solid 24.11% on equity, carries no debt, and has a Piotroski score of 7 out of 9—these are signs of financial discipline. Sales grew 38.68%, and the latest quarter shows ₹1,289 Cr in sales with ₹145 Cr in net profit. The profit surge of 365.87% demands caution: such numbers often come from a low base or one-off factors, not sustainable compounding. A PEG of 0.09 looks absurdly cheap, but only if that growth persists; I'd rather pay a fair price for a durable business than a bargain price for a temporary spurt. At ₹1,111, the P/E is 19 and price-to-book is 4.76—not cheap for an agrochemical player in a competitive, commodity-like industry. The promoter holding of 74.82% aligns interests, but minority investors need to watch execution. With no debt, the downside is cushioned, yet the dividend yield of 0.76% suggests shareholders rely on capital appreciation, not cash returns. I like the balance sheet and the return on equity, but I cannot call this a wonderful business at a fair price. The FairStock Score of 51/100 says mixed, and I agree. It's a fast grower right now, but farming inputs are cyclical and dependent on monsoon, regulation, and competition. I'd want to see several more quarters of double-digit sales growth before applying Buffett's rule: be fearful when others are greedy. I'd keep this on my watchlist, not in my wallet.

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