Shriram Pistons & Rings Limited
Shriram Pistons & Rings Limited Fundamental Analysis
Shriram Pistons & Rings Limited (SHRIPISTON.NS) shows strong financial fundamentals with a PE ratio of 26.27, profit margin of 12.40%, and ROE of 21.21%. The company generates $44.6B in annual revenue with strong year-over-year growth of 14.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 81.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SHRIPISTON.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakSHRIPISTON.NS struggles to generate sufficient returns from assets.
Valuation Score
WeakSHRIPISTON.NS trades at a premium to fair value.
Growth Score
ExcellentSHRIPISTON.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSHRIPISTON.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateSHRIPISTON.NS maintains healthy but balanced margins.
Key Financial Metrics
Is SHRIPISTON.NS Expensive or Cheap?
P/E Ratio
SHRIPISTON.NS trades at 26.27 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SHRIPISTON.NS's PEG of 2.88 indicates potential overvaluation.
Price to Book
The market values Shriram Pistons & Rings Limited at 5.01 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.48 times EBITDA. This signals the market has high growth expectations.
How Well Does SHRIPISTON.NS Make Money?
Net Profit Margin
For every $100 in sales, Shriram Pistons & Rings Limited keeps $12.40 as profit after all expenses.
Operating Margin
Core operations generate 16.32 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.21 in profit for every $100 of shareholder equity.
ROA
Shriram Pistons & Rings Limited generates $8.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Shriram Pistons & Rings Limited generates limited operating cash flow of $2.74B, signaling weaker underlying cash strength.
Free Cash Flow
Shriram Pistons & Rings Limited produces free cash flow of $1.88B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $42.71 in free cash annually.
FCF Yield
SHRIPISTON.NS converts 1.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.88
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.007
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.68
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How SHRIPISTON.NS Stacks Against Its Sector Peers
| Metric | SHRIPISTON.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.27 | 24.25 | Neutral |
| ROE | 21.21% | 1185.00% | Weak |
| Net Margin | 12.40% | 2463.00% | Weak |
| Debt/Equity | 0.68 | 0.71 | Neutral |
| Current Ratio | 1.71 | 2.82 | Neutral |
| ROA | 8.99% | -32612.00% (disorted) | Weak |
SHRIPISTON.NS outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Shriram Pistons & Rings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
125.16%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
604.65%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
48.67%
Industry Style: Cyclical, Growth, Discretionary
High Growth