Shemaroo Entert. (SHEMAROO)

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

Key Financials

Strengths

• Trades at a 44% discount to book value: P/B of 0.56 against book value of ₹184.18
• Promoter holding is high at 65.54%, aligning management with minority shareholders
• Sales decline is moderate at -2.24%, indicating the core revenue base is relatively stable
• Latest quarter sales of ₹161 crore show the company still has meaningful operating scale

Concerns

• Deeply unprofitable: ROE at -28.47%, ROCE at -9.31%, and latest quarterly net loss of ₹55 crore
• Piotroski F-Score of 2/9 signals poor financial health and operational distress
• Profit growth fell -52.41%, and P/E is meaningless with zero earnings
• Debt/equity of 0.79 becomes risky when the company is losing money and paying no dividend

AI Analysis

When I look at Shemaroo, I first see a business trading at ₹104 against a book value of ₹184.18. That is a 44% discount and a P/B of 0.56. In Graham's language, this looks like a cigar-butt: a stock cheap enough to leave some margin if liquidation value is real. But the other numbers scream caution. This is not a compounding machine. ROE is -28.47%, ROCE is -9.31%, and the latest quarter produced a net loss of ₹55 crore on sales of ₹161 crore. That tells me the earnings engine is broken. A business earning negative returns on both equity and capital is consuming shareholders' wealth, not creating it. The P/E is zero because there is no earnings to justify. Sales growth is nearly flat, down 2.24%, so there is no revenue expansion saving them. Profit growth fell 52.41%, and with the Piotroski F-Score at 2 out of 9, the financial health is weak on almost every fundamental test. Debt-to-equity at 0.79 is not extreme, but when you're losing money, any debt becomes a heavier burden. Promoter holding of 65.54% is good — owners are still in the boat with me. But even Buffett likes to ride on a ship that floats. The book value gives a theoretical floor, yet a deteriorating book with negative returns can erode quickly. At ₹276 crore market cap, I'm paying less than stated book, but I'd need asset sales or a genuine operational turnaround to unlock that value. This is not a growth story or a stalwart; it is an asset play, and only if the losses stop. I'll keep it on my watchlist, but I won't confuse a cheap balance sheet with a good business.

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