Shilchar Tech. (SHILCTECH)

FairStock Score: 27/100 — RISKY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Whenever I see a business earn 72.09% on equity and 71.30% on capital employed, I stop and listen. Shilchi Tech is not an ordinary electrical equipment maker; those numbers suggest a niche franchise with pricing power and a real moat. My mentor Ben Graham would nod, but then look at 23.40 times book and 24.93 times earnings and warn me about paying for excellence as if it will never be challenged. The latest quarter shows ₹170 Cr of sales and ₹42 Cr of net profit, nearly a 25% margin, which is remarkable for this industry. The balance sheet seems healthy — the debt/equity is not given, but the Piotroski F-score of 7 out of 9 gives some comfort. Promoters own 62.12%, so their money stays with mine, which I like. However, I am bothered by the growth curve: sales rose 10.75% while profit rose 21.77%. That is operating leverage, but it can only take you so far; eventually volume must lead. At ₹5,307.80, near the top of the 52-week range, the market has already applauded. The dividend yield of 0.31% is almost nothing, so I receive no cash while waiting. A PEG of 1.53 says the price is somewhat above what growth justifies. This is a wonderful business, and I would be happy to own it — but I want a better price, or evidence that sales growth is picking up speed. In Graham's frame, the margin of safety is thin. For now, it remains a high-quality business I admire but cannot buy with conviction at this price.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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