Share India Sec. (SHAREINDIA)

FairStock Score: 58/100 — STEADY

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

Key Financials

Strengths

• Low leverage with debt/equity of 0.23 and ROCE of 19.01% provides financial resilience.
• Attractive valuation: P/E of 12.05, P/B of 1.71, and PEG of 0.46 offer a margin of safety.
• Strong recent growth: sales up 17.60%, profit up 34.48%, with latest quarter net margin around 26.6%.
• Sound fundamentals: Piotroski F-Score of 7/9 and promoter holding of 48.62% support governance.

Concerns

• Stockbroking earnings are cyclical; the stock is 29% below its 52-week high of ₹211.00.
• ROE of 12.51% is only moderate, and dividend yield is low at 1.03%.
• Profit growth outpacing sales growth may depend on margin expansion that could reverse.
• FairStock Score of 56/100 suggests steady, not exceptional, business quality.

AI Analysis

Let me evaluate Share India Sec. as a business, not a ticker. A stockbroking and allied firm earns fees from market activity, so I must never mistake a busy year for a permanent moat. Still, the numbers here are encouraging. At ₹148.80, the share trades at 12.05 times earnings, giving an earnings yield of roughly 8.3%, while the company earns a return on equity of 12.51% and a return on capital of 19.01%. That spread is important, and the debt-to-equity of 0.23 confirms the firm is not leveraged to survive. Promoters hold 48.62%, so their interests are tied to mine. Sales grew 17.60% and profit grew 34.48%, producing a PEG ratio of only 0.46. That suggests the market is not giving credit for the growth. The Piotroski F-score of 7/9 supports the quality of reported numbers. Book value is ₹87.24, so I am paying 1.71 times tangible book. Not a deep Graham bargain, but not outrageous. The latest quarter shows sales of ₹305 Cr and net profit of ₹81 Cr, a net margin around 26.6%, which is strong. However, I am wary. The 52-week range of ₹115.36 to ₹211.00 tells me this is a volatile earnings stream, and the stock is 29% below its high. A dividend yield of 1.03% offers little comfort if markets stay quiet. A stockbroker's profits can mean-revert, so I must question whether current margins and growth are peak-cycle numbers. FairStock calls it 'steady,' but I would call it cyclical-disguised-as-a-grower. My discipline: I would want to see this franchise maintain ROE and margins through a weaker quarter. If it can, the low P/E and PEG make it an attractive candidate; if not, today's earnings may be the high-water mark.

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