Shringar House (SHRINGARMS)

FairStock Score: 55/100 — STEADY

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

Key Financials

Strengths

• Sales grew 68.37% and profit grew 134.29%, with a PEG of 0.23 indicating inexpensive relative to growth.
• ROCE of 31.55% with debt/equity of 0.30 shows efficient capital use and conservative leverage.
• Piotroski F-score of 7/9 points to sound financial health.
• Promoter holding of 74.80% aligns management with minority shareholders.

Concerns

• P/E of 23.35 and P/B of 2.55 leave limited margin of safety if growth decelerates.
• Net margin is thin at roughly 4.5% (₹30 Cr net profit on ₹659 Cr sales) in a competitive jewellery industry.
• ROE is not available, and dividend yield is zero, so equity return quality and cash yield are unclear.
• High promoter holding may reduce free float; the 52-week range of ₹166 to ₹266.50 highlights volatility.

AI Analysis

Let me look at Shringar House with a value investor’s eyes. The first thing that stands out is growth: sales up 68.37% and profit up 134.29%, with a PEG of 0.23. If those numbers are sustainable, the current P/E of 23.35 and P/B of 2.55 are not unreasonable. The balance sheet is acceptable: debt/equity of 0.30, Piotroski F-score 7/9, and ROCE of 31.55% suggests management is earning a solid return on capital. Promoter holding of 74.80% is good for alignment, though it also means less free float and potentially wilder price swings. The latest quarter shows sales of ₹659 Cr and net profit of ₹30 Cr, which translates to a net margin of roughly 4.5%. That is a thin margin. Jewellery retail is a competitive and cyclical business; I do not see a clear moat in these numbers. There is no dividend yield, so the minority shareholder must rely entirely on reinvestment and price appreciation. The FairStock Score is only 55/100 – steady, not exceptional. At ₹203.81 against book value of ₹79.97, the stock trades at 2.55 times book; I need the growth to continue to justify the price. A 52-week range of ₹166 to ₹266.50 also reminds me that this is a volatile stock. Graham would ask for a margin of safety; at 23.35 times earnings, that margin is thin. I would classify it as a fast grower, but I would keep my position small, watch the quarterly numbers closely, and insist on stable or improving margins before adding money. High reported growth is attractive; durable, cash-generating growth is what makes a wonderful investment.

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