Shekhawati Inds (SHEKHAWATI)

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

Key Financials

Strengths

• Debt/Equity of 0.02 means the balance sheet is not leveraged, giving some room to survive continued stress.
• Promoter holding of 64.12% aligns insider interests with minority shareholders.
• Reported ROE of 32.67% and ROCE of 57.34% show high stated returns on capital, though on a shrinking base.
• Low absolute market cap of ₹45 Cr leaves room for a meaningful re-rating if a genuine turnaround occurs.

Concerns

• Sales growth of -86% and latest quarter sales of just ₹2 Cr show a severe collapse in business activity.
• Latest quarter net profit of -₹1 Cr and profit growth of -133.77% mean the company is now loss-making.
• Piotroski F-Score of 3/9 indicates weak financial health and multiple fundamental red flags.
• At ₹15.09, the stock trades at 4.53 times book value with zero dividend, offering no margin of safety in a deteriorating business.

AI Analysis

Let me start with what I look for: a business with a durable edge, consistent earnings, and a management that treats capital honestly. Shekhawati Inds does not pass that test today. The numbers are stark. Latest quarter sales are just ₹2 Cr and net profit is -₹1 Cr. Sales have fallen 86%, and profit growth is -133.77%. This is not a temporary pothole; it looks like the economic engine has stalled. A Piotroski F-score of 3/9 confirms that fundamental health is weak. High ROE and ROCE — 32.67% and 57.34% — may catch the eye, but they are sitting on a tiny, deteriorating base. In Graham's language, one good year or a small equity base can produce a flattering ratio; the income statement and cash generation tell the real story. On the positive side, debt/equity is 0.02, so the company is not burdened by debt. Promoter holding at 64.12% means insiders have skin in the game, but high promoter holding is not a moat. The valuation is not a bargain. At ₹15.09, the market cap is ₹45 Cr, which is 4.53 times book value of ₹3.33, and there is no dividend to compensate while waiting. The trailing P/E of 11.17 is backward-looking; with the latest quarter in losses, historical earnings are not a reliable anchor. This is a possible turnaround situation, but only if sales stabilise and profitability returns. I would need evidence, not hope, before putting money here. In Buffett's terms: it's far better to buy a wonderful business at a fair price than a struggling business at a supposedly cheap price, and Shekhawati today is not wonderful.

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