Shri Techtex (SHRITECH)

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

Key Financials

Strengths

• ROCE of 21.64% shows capital is being utilised efficiently.
• Promoter holding of 70.34% aligns management with minority shareholders.
• Latest quarter net profit of ₹6 Cr on sales of ₹37 Cr implies a healthy 16% margin.
• P/E of 11.64 is not demanding if earnings can stabilise.

Concerns

• Sales down 7.36% and profit down 20.94% over the year, showing shrinking demand.
• Piotroski F-Score of 3/9 indicates weak financial health and rising red flags.
• No dividend means shareholders get no income while waiting for recovery.
• Key data like book value, debt/equity and ROE are unavailable, so a margin-of-safety calculation is impossible.

AI Analysis

Let me look at this the way Graham would: first, does the business earn a decent return on capital? Shri Techtex shows a ROCE of 21.64%, which is respectable. But return on equity and book value are not disclosed, so I cannot judge how much earnings are being levered. The F-score of 3 out of 9 is disturbing; it tells me the latest financial statements contain more red flags than green. Sales fell 7.36% and net profit fell 20.94% over the year. A low P/E of 11.64 can look like a bargain, but when earnings are declining, a cheap multiple can become more expensive with each passing quarter. The latest quarter, with sales of ₹37 Cr and net profit of ₹6 Cr, shows a margin of roughly 16%; that is encouraging, but one quarter does not make a trend. Promoters own 70.34%, so their interests are aligned with mine in theory. Yet with no dividend, I am not being paid to wait. This is an industrial plastics business, so demand is tied to the broader economy. If the economy weakens, results could fall further. As Buffett says, it is wonderful when a great company meets a wonderful price; here, the price is low, but the business quality is uncertain. I would need several quarters of stabilisation, plus better financial-health indicators, before calling this a clear bargain. At best, it is a potential turnaround, not a compounder.

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