S H Kelkar & Co. (SHK)

FairStock Score: 27/100 — RISKY

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

Key Financials

AI Analysis

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

At ₹147, S H Kelkar is no Buffett bargain. I first look for consistent earning power. Last year sales rose 7.47%, but profits fell 39.16%. A business whose bottom line drops that much while revenue grows lacks pricing power or is in a cyclical squeeze. I need a moat: brands, patents, switching costs. I don't see it in these numbers. The trailing P/E of 22.04 gives the investor little margin of safety; Graham would insist on buying with a cushion, not at 3.10 times book value for a company earning a 14.15% ROE and a 10.29% ROCE. The debt/equity of 0.67 is manageable, but not negligible when earnings are declining. The Piotroski F-score of 4/9 and FairStock score of 23/100 reinforce my caution. The latest quarter, with ₹584 Cr sales and only ₹33 Cr net profit, implies a thin margin. A PEG of 2.95 is too expensive for a 7.47% grower. I do see some positives: promoter holding of 54.87% keeps skin in the game; the book value of ₹47.63 gives a reference, but paying three times that is not value investing. In the specialty chemicals trade, cycles can be cruel. The share has traded from ₹111 to ₹275 in a year, showing volatility and a huge earnings swing. I want evidence of sustained margin recovery, stable cash flow, and lower debt before this becomes an idea for my portfolio. At today's price, this is a cyclical company with risk, not a compounder. Patience is part of value investing, so I would wait and watch.

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