Sheetal Univer. (SHEETAL)

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

Key Financials

Strengths

• High promoter holding of 66.81% aligns owners with minority shareholders.
• ROCE of 26.15% indicates efficient capital deployment despite top-line pressure.
• Profit growth of 15.04% while sales fell suggests some margin or cost control.
• Piotroski F-Score of 6/9 points to moderately healthy financials.
• Latest quarter net profit of ₹2 Cr on ₹48 Cr sales shows the business is still profitable.

Concerns

• Sales declined 18.54%, so profit growth is not coming from underlying demand.
• P/E of 29.12 and PEG of 1.94 leave little margin of safety for value investors.
• Dividend yield of 0.21% provides negligible income cushion.
• Book value, ROE and debt/equity are not disclosed, making financial leverage and true returns hard to assess.

AI Analysis

At ₹251, Sheetal Univer is a small-cap agricultural player with a ₹277 crore market cap. Graham would tell me to demand a margin of safety; here the earnings yield is barely 3.4% (P/E 29.12), which is not cheap for a business whose sales have shrunk 18.54%. A PEG of 1.94 reinforces that I am paying almost twice the growth rate for the profit expansion. The 0.21% dividend yield is negligible, so shareholder returns depend entirely on capital appreciation. The high ROCE of 26.15% is encouraging, but without book value, ROE or debt-equity data, I cannot judge financial strength. The Piotroski score of 6 out of 9 suggests acceptable fundamentals, but it is not a ringing endorsement. Promoter holding of 66.81% is good alignment, but it also reduces floating stock and can amplify price swings. The 52-week range of ₹114 to ₹341 shows real volatility. Latest quarter sales of ₹48 Cr and net profit of ₹2 Cr imply a thin net margin of around 4%, so any input cost shock or demand dip could hurt earnings. Sales falling while profit rises may reflect cost discipline or low base, not genuine compounding. I would want to see positive volume growth and stable margins before calling this a wonderful business. At this price, the market is paying for a recovery that has not yet shown up in the top line. For a Graham buyer, the margin of safety is missing. I would keep it on a watchlist and wait for either a lower price or confirmed sales turnaround. In farming-linked commodities, cycles are the rule; patience is essential.

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