Srivari Spices & (SSFL)

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

Key Financials

Strengths

• Sales growth of 44.15% and profit growth of 45.21% show strong momentum.
• P/E of 9.88 with PEG of 0.22 indicates the market is pricing in little growth.
• ROCE of 27.90% reflects efficient capital deployment.
• Piotroski F-Score of 7/9 signals solid fundamental health.
• Promoter holding of 58.28% aligns management with minority shareholders.

Concerns

• Missing book value, debt-to-equity, and ROE data limit balance sheet analysis.
• Price fell from ₹294.45 to ₹109 (down ~63%) with no stated reason.
• Latest quarter's ₹7 Cr profit is large versus the trailing P/E, creating earnings-consistency questions.
• Dividend yield of only 0.36% offers no income cushion for shareholders.

AI Analysis

At ₹109, Srivari Spices has a market cap of just ₹118 Cr and trades at 9.88 times earnings. Over the last year, sales grew 44.15% and profits 45.21%, so a PEG of 0.22 screams bargain. But I've learned that a cheap price is only a good deal if the business behind it is sound. ROCE of 27.90% is impressive, and a Piotroski score of 7/9 suggests strong financial health. Promoters holding 58.28% tells me their interests are aligned with mine. However, I am deeply uncomfortable with what I don't see: no book value, no debt-to-equity, no ROE. Graham would insist on a margin of safety you can measure, and I cannot fully measure that here. The 52-week range is another red flag: the stock fell from ₹294.45 to ₹86 and now sits at ₹109. A 63% decline demands an explanation. Is it a market overreaction or a deteriorating story? The latest quarter shows sales of ₹76 Cr and net profit of ₹7 Cr — that's strong, but it also implies trailing twelve-month earnings are only about ₹12 Cr, meaning this quarter did most of the heavy lifting. One quarter does not make a trend. Growth of 45% is never permanent, especially in India's fragmented spices industry. What is Srivari's moat? Brand pricing power? Distribution? I cannot see it in these numbers. The dividend yield of 0.36% means I get no income while I wait. So I would put this on my watchlist, not my buy list. I need more data and a clear reason for the price collapse before committing capital. Patience is a virtue, and the next few quarters will tell me whether this is a wonderful business at a foolish price or a value trap.

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