Shrenik (SHRENIK)
TurnaroundScore breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹0.31 |
| Market Cap | ₹18.97 Cr |
| P/E Ratio | 5.17 |
| ROCE | 0% |
| ROE | —% |
| Dividend Yield | 0% |
| Profit Growth | 1,000% |
| Debt/Equity | — |
| Sales Growth | 7.5% |
| Promoter Holding | 25.38% |
| 52-Week Range | ₹0.27 — ₹0.65 |
| Sector | Paper, Forest & Jute Products |
| Book Value | ₹-3.43 |
Strengths
- Recent momentum: sales grew 97.63% and profit grew 1,000% from a low base.
- Latest quarter is positive with ₹9 Cr sales and ₹1 Cr net profit.
- Piotroski F-Score of 6/9 indicates some improvement in financial health.
- PEG of 0.04 suggests the market is pricing in very high growth; if sustained, valuation could look less expensive.
Concerns
- Negative book value of ₹-2.88 per share means liabilities exceed assets, leaving no equity cushion.
- ROCE is 0.00% and Debt/Equity is N/A due to negative equity, indicating poor capital efficiency.
- Promoter holding is only 25.38%, raising governance and alignment risks.
- 1,000% profit growth is off a tiny base; latest quarter net profit of ₹1 Cr on ₹9 Cr sales is thin and unproven.
AI Analysis
Looking at Shrenik, my first reaction is suspicion. A share price of ₹0.40, market cap of ₹27 Cr, and a negative book value of ₹-2.88 tell me this company has no net assets to back my investment. Benjamin Graham would insist on margin of safety; with liabilities exceeding assets, there is none. The P/E of 20.72 and zero ROCE reinforce that whatever earnings exist are tiny relative to the capital base. A 97.63% sales growth and 1,000% profit growth sound spectacular, but they start from a very low base. The latest quarter shows sales of ₹9 Cr and net profit of ₹1 Cr; that is a positive sign, but one quarter is not a trend. A zero dividend yield means I get paid nothing to wait. Promoter holding of only 25.38% worries me; I want owners with their wealth aligned with mine. The Piotroski F-score of 6/9 suggests some improvement in financial health, and the PEG of 0.04 would be interesting only if growth were durable and equity were positive. But I cannot value a company with negative book value using conventional metrics. This is not a wonderful business with a moat; it is a small, distressed paper company showing early signs of recovery. I would need years of consistent profitability, a positive book value, and meaningful debt reduction before I would consider putting money here. In the meantime, it remains a speculative turnaround, not an investment.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer