Shriram Pistons (SHRIPISTON)

FairStock Score: 61/100 — STEADY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear both hats here: Buffett's quality lens and Graham's margin-of-safety lens. Shriram Pistons is an auto-components business with ₹19,789 Cr market cap at ₹4,492.40. The good: ROCE is 25.70%, debt/equity just 0.20, Piotroski F-Score 7/9, and five-year revenue CAGR 17.18%. That suggests a real operating franchise, not a fragile balance sheet. Latest quarter sales ₹1,023 Cr and net profit ₹126 Cr show it earns money, while promoter holding 43.75% gives some skin in the game. But the valuation asks a lot: P/E 35.09, P/B 6.82, and price is near the 52-week high of ₹4,835. Book value is only ₹658.60, so you're paying a hefty premium for those returns. Growth is also uneven: sales growth 9.21% but profit growth -13.79%, and free cash flow is only ₹49 Cr—thin against ₹126 Cr quarterly profit. Dividend yield 0.22% is negligible, so returns depend on earnings compounding, not cash returned. PEG 1.27 is not outrageous if growth persists, but with profit declining, it's not a bargain. In Graham's terms, the price-to-book is the warning flag; in Buffett's terms, the ROCE is the attraction. FairStock Score 61/100, STEADY, fits my view: a decent stalwart, not a fast grower or asset play. I'd want margin of safety closer to book value or clearer profit recovery. For an Indian retail investor, buy only if you can tolerate a high multiple and cyclical auto demand; otherwise watch.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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