Srivasavi Adhes. (SRIVASAVI)

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

Key Financials

Strengths

• Sales growth of 30.96% shows strong recent demand
• ROCE of 23.84% indicates good returns on capital employed
• Promoter holding of 74.57% aligns management with minority shareholders
• P/E of 11.95 is modest if earnings stabilize at recent quarterly levels

Concerns

• Profit growth of -30.16% despite strong sales growth signals margin pressure
• Piotroski F-Score of 4/9 suggests deteriorating financial health
• No dividend, book value, ROE, or debt/equity data disclosed; insufficient for a Graham-style margin of safety
• Stock is far below its 52-week high of ₹98, reflecting market disappointment

AI Analysis

Looking at Srivasavi Adhesives, the first thing that catches my eye is the contradiction. Sales grew nearly 31%, yet profits fell 30%. In my world, revenue without profit is just ego. The trailing P/E of 11.95 and a market cap of only ₹66 Cr look cheap, but cheap can be a value trap when earnings are deteriorating. ROCE at 23.84% is genuinely impressive; it suggests the company knows how to deploy capital. But I have no ROE, book value, or debt/equity figures. Graham taught me to demand a margin of safety; I cannot calculate a safety margin when the balance sheet is a blank. The Piotroski score of 4/9 reinforces my caution—this is a weak score, indicating financial health has frayed. The PEG ratio of 0.39 is being generous by using the sales growth number, but profit growth is negative. I do not pay for sales growth; I pay for earnings. Promoter holding at 74.57% is good—it means owners have skin in the game—but high ownership cannot prevent a business from losing pricing power. The latest quarter shows ₹53 Cr sales and ₹3 Cr net profit; if that run rate holds, the valuation is not high, but one quarter is not a trend. The stock is near the bottom of its 52-week range of ₹39 to ₹98, so the market is already disappointed. This looks like a cyclical or turnaround candidate, not a stalwart. I would need to see several quarters of stable margins, positive profit growth, and full financial disclosures before committing any capital.

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