Shree Ram Prote. (SRPL)

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

Key Financials

Strengths

• Trades below book value with P/B of 0.52, offering a Graham-style statistical margin of safety if stated assets are real.
• Piotroski F-Score of 6/9 suggests moderate accounting-based financial health.
• Small market cap of ₹12 Cr means a successful operational turnaround could provide outsized upside.
• Reported profit growth of 33.33%, though from a negligible base, indicates some potential inflection.

Concerns

• Promoter holding is only 4.08%, an extremely low level of skin in the game for a micro-cap.
• Latest quarter sales are ₹0 Cr and net profit is -₹0 Cr; there is no operating revenue or earnings power.
• Debt/Equity of 1.97 is high, and ROCE of 1.31% is inadequate to cover the cost of leverage.
• P/E of 0.00 and zero dividend yield make returns dependent entirely on speculative re-rating or asset liquidation.

AI Analysis

At ₹0.45, this stock sells at 0.52 times book value, ostensibly picking up assets for 48 paise to the rupee. As a Graham investor, I am naturally drawn to a bargain. But the bargain has to be real. The latest quarter reports sales of ₹0 crore and net profit of -₹0 crore. There is no operating engine. Sales growth is 0.00%, and ROCE is just 1.31%. A business that earns little on capital and carries debt-to-equity of 1.97 is not a compounder; it is a leveraged stub. Profit growth of 33.33% is a statistical illusion without meaningful base earnings. P/E of 0.00 confirms no sustainable profitability. The Piotroski F-Score of 6/9 suggests the balance sheet is not deteriorating rapidly, but it does not tell me the company can generate cash. My bigger worry is governance: promoter holding is only 4.08%. In a ₹12 crore micro-cap, absent owners and minimal skin in the game is a serious red flag. I learned that numerical cheapness can be a value trap if capital is structurally misallocated. With debt nearly twice equity, the book value of ₹0.87 may be overstated or subject to writedowns. If assets are sold, lenders get paid first. I cannot compute an intrinsic value because there is no earnings power. This is an asset play, not a wonderful business at a fair price. I would need substantial evidence of restructuring, revenue revival, debt reduction, and promoter commitment before investing. Until then, this remains too close to a speculative shell for my taste.

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