S H Kelkar & Co. (SHK)
CyclicalFairStock Score: 27/100 — RISKY
Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹170.72 |
| Market Cap | ₹2,363.12 Cr |
| P/E Ratio | 26.76 |
| ROCE | 10.29% |
| ROE | 14.15% |
| Dividend Yield | 1.15% |
| Profit Growth | 270.98% |
| Debt/Equity | 0.76 |
| Sales Growth | -0.52% |
| Promoter Holding | 54.87% |
| 52-Week Range | ₹111.98 — ₹257.44 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹98.39 |
Strengths
- Promoter holding at 54.87% keeps management aligned with public shareholders.
- ROE of 14.15% and book value of ₹47.63 provide some measure of intrinsic worth.
- Sales growth is still positive at 7.47%, and latest quarter sales of ₹584 Cr show scale.
- Debt/equity of 0.67 remains moderate; the balance sheet is not excessively leveraged.
Concerns
- Profit growth is -39.16%, yet the trailing P/E is 22.04, offering no earnings safety cushion.
- Piotroski F-Score of 4/9 signals weak fundamental health and poor financial quality.
- PEG of 2.95 indicates the stock is expensive relative to its modest growth.
- ROCE of 10.29% and a dividend yield of 0.68% leave limited return on capital and shareholder yield.
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer