Shriram Properti (SHRIRAMPPS)

FairStock Score: 54/100 — MIXED

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

Key Financials

Strengths

• Trades below book value: price ₹82.87 vs book value ₹95.60, giving a P/B of 0.87.
• Sales growth is strong at 47.62%, with latest quarter sales of ₹179 Cr indicating business momentum.
• Debt/Equity is manageable at 0.51, and ROCE is positive at 9.73%.
• Market cap of ₹1,354 Cr is lower than the implied total book value, offering a theoretical asset cushion.

Concerns

• Latest quarter net profit is -₹7 Cr and ROE is negative at -1.30%, so the company is not earning an acceptable return on equity.
• Profit growth is -153.05%, meaning profitability has deteriorated sharply despite sales growth.
• Piotroski F-Score is only 4/9, suggesting weak overall financial health.
• Promoter holding is low at 27.89%, and there is zero dividend yield to reward patient shareholders.

AI Analysis

Let me start with the numbers as they are, not as I wish them to be. Shriram Properti sells at ₹82.87, while book value is ₹95.60. A stock trading below book can catch my eye, but cheapness alone is not a thesis. The company grew sales 47.62%, yet profit growth collapsed by 153.05% and the latest quarter shows a net loss of ₹7 crore on sales of ₹179 crore. In real estate, revenue without profit is simply delayed trouble. Return on equity is negative at -1.30%; a business that earns less than your fixed deposit is not compounding wealth. ROCE of 9.73% is modest; debt-equity of 0.51 is tolerable, but not exciting. The P/E of 19.33 is meaningless with negative earnings; the so-called PEG of 0.41 assumes growth, but there is no positive profit growth. I demand a margin of safety. The book value gives some cushion, but asset value matters only if the assets can be converted into cash or earnings. Promoter holding is only 27.89%—I prefer owners who are heavily invested alongside me. There is no dividend to reward patience. Piotroski F-Score of 4/9 tells me financial health is weak. This looks more like a potential value trap than a wonderful business. If it restores profitability and proves its asset values through execution and cash flows, I will revisit. Until then, I would rather pass on a bargain that may become cheaper. In Graham's words, price is what you pay, value is what you get; here, I cannot yet see the value being realized.

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