Shree OSFM (SHREEOSFM)

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

Key Financials

Strengths

• P/E of 11.48 is a modest valuation for a small-cap profitable business.
• ROCE of 19.67% suggests decent capital efficiency.
• Piotroski F-Score of 7/9 indicates solid recent financial health.
• Sales growth of 11.23% shows demand; promoter holding of 52.24% aligns interests.

Concerns

• Profit growth of 1.88% lags sales growth of 11.23%, and latest quarter margin is only about 6.6% (₹5 Cr net profit on ₹76 Cr sales).
• Zero dividend yield means no income while waiting for value to be recognized.
• Critical data—book value, ROE, and debt/equity—are unavailable, so a Graham margin of safety cannot be computed.
• Small market cap of ₹120 Cr and 52-week range of ₹50.10-₹123.95 imply high volatility and cyclical risk.

AI Analysis

Let me apply the Graham discipline to Shree OSFM. The headline numbers are mixed. At ₹70.90, the market cap is only ₹120 crore, and the P/E is 11.48. That looks reasonable, but a cheap multiple is only attractive if earnings are stable and growing. Sales rose 11.23%, yet profit grew just 1.88%. In road transport, that gap tells me the company is generating more revenue without converting it to the bottom line. Competition, input costs, or weak pricing power are likely squeezing margins. The latest quarter makes it visible: ₹76 crore of sales produced ₹5 crore of net profit, roughly a 6.6% margin. That is not a signature of a wide-moat business. Still, ROCE of 19.67% is respectable, and the Piotroski F-score of 7/9 suggests the financial health has not deteriorated. Promoter holding of 52.24% is a positive sign; owner-operators should act with more care. But the dividend yield is zero, so I cannot rely on income while waiting. The 52-week range of ₹50.10 to ₹123.95 shows how volatile this small road-transport name has been; the current price is closer to the bottom, which may mean value or a value trap. The PEG of 1.29 says the market is pricing in reasonable growth, but the reported profit growth of 1.88% does not support that optimism yet. More importantly, I am flying without book value, ROE, and debt/equity. Graham insisted on a margin of safety, and I cannot calculate it with missing critical data. This appears to be a slow grower, not a great compounding franchise. I would keep it on the watch list, but I would not buy until margins stabilize and the balance sheet is transparent.

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