Shrem InvIT (SHREMINVIT)
CyclicalFairStock Score: 31/100 — RISKY
Score breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 1/1
Key Financials
| Current Price | ₹118 |
| Market Cap | ₹7,207.96 Cr |
| P/E Ratio | 7.03 |
| ROCE | 11.25% |
| ROE | —% |
| Dividend Yield | 9.22% |
| Profit Growth | -43.11% |
| Debt/Equity | — |
| Sales Growth | -18.1% |
| 52-Week Range | ₹92.05 — ₹118 |
| Sector | Construction |
Strengths
- Low P/E of 7.03 and price near lower end of 52-week range (₹92.05–₹107.25) offer valuation comfort.
- Dividend yield of 9.22% is attractive for income investors, if sustained.
- Latest quarter net profit margin is robust at ~28% (₹132 Cr profit on ₹471 Cr sales).
- ROCE of 11.25% suggests moderate capital efficiency.
Concerns
- Revenue decline of 18.10% and profit decline of 43.11% indicate a deteriorating operating trend.
- Piotroski F-Score of 3/9 points to weak financial health and poor operational efficiency.
- Key balance sheet transparency issues: debt/equity, book value, and promoter holding are not reported.
- FairStock score of 31/100 flags the stock as risky.
AI Analysis
This business reminds me that a low price can be a trap. Shrem InvIT trades at ₹99.15 with a market cap of ₹6,057 Cr and a P/E of 7.03, which looks cheap on the surface. But I never buy a lousy business merely because it appears inexpensive. The latest quarter shows sales of ₹471 Cr and net profit of ₹132 Cr, yet sales are down 18.10% and profits have fallen 43.11%. That kind of deterioration fails Graham's test of stable earnings. The Piotroski F-Score of 3/9 reinforces my concern: the company's financial health is weak. A 9.22% dividend yield looks attractive, but dividends are only as safe as the underlying cash flows, and falling profits put that payout at risk. ROCE of 11.25% is respectable, but it is not an extraordinary moat. Civil construction and infrastructure are inherently cyclical, dependent on government spending and project execution. Shrem InvIT may have assets, but unclear debt levels and unknown promoter holding make me uncomfortable. I need margin of safety: a durable business, consistent profitability, and a balance sheet I can trust. This has none at the moment. The FairStock score of 31/100 calls it risky, and I agree. I would wait for evidence of stabilisation, let the debt and cash flow numbers become visible, and only then consider whether the yield is sustainable. Mr. Market is offering a discount, but a discount on a deteriorating asset is not value; it is a value trap. Patience is better than forced buying.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer