Sh.Pushkar Chem. (SHREEPUSHK)

FairStock Score: 40/100 — MIXED

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

Key Financials

Strengths

• Low debt/equity of 0.27 indicates a strong balance sheet and limited financial risk.
• Reasonable valuation: P/E of 13.92 and PEG of 0.99 for a ~14% grower—not overpriced.
• Promoter holding of 69.36% aligns management interests with minority shareholders.
• Piotroski F-score of 7/9 suggests solid overall financial health.
• Consistent growth: sales up 14.65% and profit up 13.51%.

Concerns

• ROE of 10.34% and ROCE of 11.64% reflect mediocre capital efficiency, not a wide-moat franchise.
• Dividend yield of only 0.63% offers limited income support.
• P/B of 2.80 means paying a significant premium to book value for moderate returns.
• Latest quarterly net margin is thin: ₹18 Cr profit on ₹249 Cr sales (~7.2%).

AI Analysis

Let me approach Sh.Pushkar Chem. as I would any business. First, is it a business I understand? Dyes and pigments—yes, it's a niche chemical player. The numbers show a company growing at a reasonable clip: sales up 14.65% and profit up 13.51%. But growth alone doesn't make a good investment. I need a durable moat and sound financial health. Here, the balance sheet is conservatively run, with debt-equity at just 0.27—that gives me comfort. The Piotroski F-Score of 7/9 suggests financial fundamentals are solid, not exceptional, but respectable. Yet I see a business earning only 10.34% on equity and 11.64% on capital. That's mediocre. As Graham would say, a company should be able to earn at least a satisfactory return on the money shareholders have put in. At these levels, it does not have the look of a franchise with a wide moat. The promoter holding of 69.36% is reassuring—owners have skin in the game. Valuation? At ₹359.65, the P/E is 13.92, which is fair for a company with 13-14% growth. The PEG ratio sits at 0.99—right around one, indicating the price is roughly fair relative to earnings growth. The dividend yield is a thin 0.63%, so I am not being paid to wait. The book value is ₹128.26, so at 2.80 times book, I'm paying a premium for that growth. Is it warranted? Possibly, if the company can sustain double-digit growth. But with a FairScore of 48/100, the picture is mixed. The latest quarter shows sales of ₹249 Cr and net profit of ₹18 Cr—a thin margin that needs watching. If I buy here, I'm not getting a bargain. I'm getting a decent, conservatively financed business at a fair price. That's not the way I made my fortune. I'd rather wait for a margin of safety. For now, I'll keep this on my watchlist, but I won't rush in.

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