Shree Karni (SHREEKARNI)

FairStock Score: 51/100 — MIXED

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

Key Financials

Strengths

• Sales growth of 39.70% and profit growth of 26.69% show strong momentum
• ROCE of 14.23% indicates decent capital efficiency
• Piotroski F-Score of 7/9 suggests sound financial health
• PEG ratio of 0.56 points to reasonable valuation relative to growth
• Promoter holding of 69.21% aligns management with shareholders

Concerns

• Zero dividend yield means no income; returns depend solely on capital appreciation
• Book value, ROE, and debt/equity are not available, limiting a Graham-style margin-of-safety analysis
• Profit growth of 26.69% lags sales growth of 39.70%, indicating possible margin pressure
• Share price has dropped sharply from the 52-week high of ₹712 to ₹431.40

AI Analysis

Let me start with what I know. Shree Karni, a textile products company, trades at ₹431.40 with a market cap of ₹304 Cr. The trailing P/E is 18.51, and the company has grown sales 39.70% and profits 26.69%. At first glance, this looks like a fast grower selling at a reasonable price. The PEG ratio of 0.56 reinforces that: you are paying less than the growth rate if the growth continues. But I need discipline. Textile manufacturing is a brutally competitive business, and I don't see a clear moat in these numbers. The 14.23% ROCE is respectable but not extraordinary, and it tells me the business earns a decent return on capital employed, but not enough to give me a wide margin of safety. The Piotroski F-Score of 7/9 is encouraging; it suggests improving operating efficiency and balance sheet quality. Promoter holding at 69.21% is a positive check on alignment. Graham would be unhappy with missing data. I have no book value, so no P/B and no ROE. I cannot compute the debt/equity position from what is given. That forces me to rely on earnings power, and the latest quarter, with ₹107 Cr sales and ₹6 Cr profit, shows the business is working. Still, one quarter is not a year. There is also no dividend. Zero yield means my total return depends entirely on reinvestment and future share price. That is fine for a growing business, but it demands high confidence in management and durable demand. The share price has fallen from ₹712 to ₹431, and I must ask whether the market is offering me a discount or smelling trouble. In short, Shree Karni has growth, a reasonable P/E, and solid quality indicators, but I cannot call it a Graham bargain without complete balance sheet data. I would keep it on my watchlist and demand a wider margin of safety.

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