Shreyans Inds. (SHREYANIND)

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

Key Financials

Strengths

• P/B of 0.60 with book value ₹287.79 versus price ₹171.88
• Low debt/equity of 0.13
• ROCE of 16.33% indicates efficient capital use
• Promoter holding of 50.50% aligns interests with minority shareholders
• Dividend yield of 1.96% provides some income while waiting

Concerns

• Profit growth of -128.02% and latest quarter net loss of ₹3 Cr
• Sales declining 6.17%, showing weak demand
• Piotroski F-Score of 3/9 suggests deteriorating financial health
• Paper industry is cyclical and competitive, with uncertain pricing power

AI Analysis

This business is not a wonderful compounder, but it may be a bargain. Shreyans Inds. trades at ₹171.88, while book value is ₹287.79 — that's a 40% discount. As Graham taught, buying a rupee of assets for sixty paise provides a margin of safety, especially when debt is just 13% of equity. The company’s ROCE of 16.33% shows the underlying capital is productive, though ROE of 8.87% is modest. Paper is a cyclical and competitive industry; sales fell 6.17% and profit growth crashed by 128%, with the latest quarter showing a net loss of ₹3 Cr on sales of ₹159 Cr. The Piotroski F-score of 3/9 warns of financial distress signals, so I cannot call this a quality franchise. Promoters own 50.5%, which aligns interests. The dividend yield of 1.96% provides some return while waiting. I would not rely on earnings; I'm buying assets at a deep discount. But cheap can get cheaper. The 52-week range shows volatility: ₹122 to ₹247. The market sees trouble. I need evidence that this is a cyclical trough, not a secular decline. If the company can maintain ROCE above 15% and return to profitability, the stock has room to re-rate. If losses persist, book value will erode. This is an asset play requiring patience and a close watch on working capital, debt, and paper demand. I would not pay full price for growth; I would want the asset discount to protect me.

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