Shri Hare-Krish. (SHKSIL)

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

Key Financials

Strengths

• Price-to-earnings ratio of 9.11 is modest on a trailing basis
• ROCE of 16.05% indicates decent capital efficiency
• Promoter holding high at 73.58%, aligning interests with minority shareholders
• Latest quarter reported net profit of ₹5 crore on sales of ₹39 crore
• Current price ₹43.20 is within the 52-week range of ₹34.00–₹47.00, not near a speculative high

Concerns

• Profit growth is negative at -2.92%, and sales growth is weak at 3.22%
• Piotroski F-Score of 4/9 suggests weak fundamental health
• PEG ratio of 2.83 implies the valuation is not cheap relative to growth
• No dividend and insufficient data on book value, debt-to-equity, and ROE limit proper analysis

AI Analysis

At ₹43.20, Shri Hare-Krish is a small sponge iron player with a market cap of just ₹83 crore. On the surface, a P/E of 9.11 looks cheap, and a ROCE of 16.05% suggests capital efficiency is respectable. But value investing demands more than a low multiple. The business is growing slowly—sales up only 3.22%—and profits actually fell 2.92%. With a PEG of 2.83, you are paying a rich price for very modest growth. The Piotroski F-Score of 4/9 is a red flag; it tells me the financial health is not improving across the key metrics I like to check. There is no dividend, so minority shareholders are not being paid to wait. Promoter holding is high at 73.58%, which can be good alignment, but it also means low floating stock and potential liquidity issues. This is a commodity business—sponge iron is cyclical, price-driven, and lacks pricing power. There is no durable moat here. Also, I cannot see the book value, debt-to-equity, or ROE, which means I am flying blind on the balance sheet and return on equity. A Graham disciple would demand a margin of safety, and with declining profits and weak fundamentals, I do not see it. The latest quarter shows sales of ₹39 crore and net profit of ₹5 crore, but one quarter does not make a trend. This is not a wonderful business at a fair price; it is an average cyclical at a seemingly cheap price. I would keep it on the watchlist, but I would not rush in without more data and evidence of an earnings turnaround.

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