Shera Energy (SHERA)

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

Key Financials

Strengths

• Strong growth: sales up 29.89% and profit up 60.94%.
• Cheap on growth: P/E of 11.58 and PEG of 0.25.
• Decent capital efficiency: ROCE at 17.22%.
• Piotroski F-Score of 7/9 suggests improving fundamentals.
• High promoter holding of 62.35% aligns interests.

Concerns

• Very thin net margin in latest quarter: ₹9 Cr profit on ₹397 Cr sales, roughly 2.3%.
• No dividend yield, so minority shareholders rely entirely on reinvestment and capital gains.
• Insufficient data: no book value, ROE, or debt-to-equity ratio disclosed.
• Stock is well off its 52-week high of ₹183.15, which could reflect cyclical pressure or market skepticism.

AI Analysis

Let me start with what the numbers say. Shera Energy has grown sales by nearly 30% and profit by over 60%, and yet the market prices it at only 11.58 times earnings. That gives a PEG of 0.25. On the surface, this is the kind of growth-at-a-reasonable-price situation I like. But the surface is not enough. The business is in aluminium, copper and zinc products—a metal-processing world that is often cyclical and price-taking. The latest quarter shows the razor-thin margin: ₹397 crore of sales produced just ₹9 crore of profit, roughly 2.3%. A small shift in raw material costs or demand could hit earnings heavily. ROCE of 17.22% is respectable, and a Piotroski score of 7 out of 9 suggests the recent improvements have some financial integrity behind them. I also like that promoters own 62.35%—their interests are largely aligned with minority holders. However, I am uncomfortable with missing data. I have no book value, no ROE, no debt-to-equity ratio. Graham insisted on knowing the balance sheet before buying. There is also no dividend; the zero yield means I am completely dependent on reinvestment and future earnings growth. The share price, down from ₹183 to about ₹135, offers a wider margin of safety than at the top, but in cyclical metals, a falling price can also signal deteriorating conditions. At ₹291 crore market cap, it is a small-cap; such names deserve extra care. If the company can keep compounding profits at anything close to recent rates, the stock looks cheap. But I would want audited balance sheet details, cash flow visibility, and evidence that the moat is more than good demand in a good cycle. For now, it is a promising fast grower, not yet a completed Buffett investment.

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