Shreeji Global (SHETHJI)

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

Key Financials

Strengths

• ROCE of 37.40% shows efficient use of capital.
• P/E of 15.63 with 70.40% profit growth gives a PEG of 0.22, attractive if profit is sustainable.
• Promoter holding of 70.13% aligns management with public shareholders.
• Piotroski F-Score of 6/9 indicates reasonable financial health.
• Latest quarter net profit of ₹11 Cr on ₹295 Cr sales points to improving margins.

Concerns

• Sales declined 16.19%, so the core top line is shrinking.
• No dividend; returns depend entirely on capital appreciation.
• Latest-quarter profit is far above the trailing run-rate implied by the market cap and P/E, raising sustainability concerns.
• Book value, ROE and debt/equity are missing, preventing a full balance-sheet margin-of-safety check.

AI Analysis

I try not to fall in love with a stock just because the profit line is rising. Shreeji Global forces me to look at the contradiction between shrinking sales and soaring earnings. Sales fell 16.19%, yet profit grew 70.40%. In Graham's language, that is exactly where I must separate real earning power from a lucky quarter. The trailing P/E is 15.63, and the PEG ratio is 0.22, which seems irresistibly cheap. But a low PEG is meaningless if the earnings cannot be repeated. The latest quarter shows net profit of ₹11 Cr on sales of ₹295 Cr, a much higher margin than the trailing earnings imply. That alerts me to seasonality or possible one-time gains. On the positive side, ROCE of 37.40% is impressive; it suggests the business is using its capital very efficiently. Promoter holding of 70.13% is also a good sign because the people running the company have a large stake alongside outside shareholders. The Piotroski score of 6 out of 9 tells me the recent fundamentals are not deteriorating badly. But this is not a stock I can buy on faith. The top line is contracting, there is no dividend, and I have no disclosed book value, ROE, or debt-equity ratio. That means I cannot apply Benjamin Graham's margin of safety tests with confidence. I need to know whether the revenue decline has stopped, and whether the improvement in margins is sustainable. If it is, this may be a genuine turnaround at an attractive price. If the profit jump is a one-off, the low P/E will quickly look expensive. I would put this on my watch list and demand more evidence before committing capital.

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