Shivalik Rasayan (SHIVALIK)

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

Key Financials

Strengths

• Low debt-to-equity of 0.17 provides financial stability
• Trades near book value (P/B 1.10) with book value of ₹246.28
• Promoter holding of 47.37% shows alignment with minority shareholders
• Positive net profit in latest quarter keeps it afloat despite pressure

Concerns

• Return on equity is just 2.31%, signaling poor capital efficiency
• Profit growth declined by 48.77% and sales by 3.83%, reflecting weak demand
• P/E of 39.56 is expensive for a business with shrinking earnings
• Piotroski F-score of 3/9 suggests deteriorating financial health

AI Analysis

Shivalik Rasayan's numbers paint a sobering picture. At ₹271, the market is asking 39.56 times earnings for a business whose profits have collapsed by 48.77% and sales have shrunk by 3.83%. Return on equity is just 2.31%, and return on capital is 5.51% – hardly the kind of business that compounds wealth. This is not a wonderful company at a fair price; it's a mediocre business at what looks like a tempting book-value multiple. The balance sheet is the one bright spot: debt-to-equity is only 0.17, and book value per share is ₹246.28, so you're paying only 1.10 times book. But as Graham warned, a low price-to-book is only meaningful if management can generate adequate returns on that book. With ROE at 2.31%, the capital is clearly not being deployed effectively. The latest quarter's net profit of ₹4 Cr on sales of ₹82 Cr implies a thin margin of under 5%, and the Piotroski F-score of 3/9 signals deteriorating fundamentals under the hood. Promoter holding of 47.37% is decent and aligns interests, but that alone doesn't create value. The stock has fallen from a 52-week high of ₹533 to ₹271, which may tempt a bottom-fisher. However, falling knife or not, the lack of earning power gives me no margin of safety. I'd need to see a clear path to margin recovery and a return to growth before jumping in. For now, this is a cyclical or maybe a value trap, not a long-term compounder.

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