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

Strengths

• Zero debt (Debt/Equity 0.00) provides strong balance sheet stability
• High ROE of 24.11% and ROCE of 16.50% indicate efficient capital use
• Sales growth of 38.68% with latest quarter revenue at ₹1,289 Cr
• Promoter holding at 74.82% aligns management interests with shareholders
• Piotroski F-Score of 7/9 reflects solid financial health

Concerns

• Profit growth of 365.87% is likely unsustainable and may be from a low base, making the PEG ratio of 0.09 misleading
• P/E of 19.00 and P/B of 4.76 leave little margin of safety at current price
• Dividend yield of only 0.76% offers minimal cash return to investors
• FairStock Score of 51/100 suggests mixed fundamentals relative to valuation

AI Analysis

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.

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