Pasupati Spinng. (503092)

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

Key Financials

Strengths

• Price ₹32 is below book value of ₹33.90, giving a price-to-book ratio of 0.94.
• Book value per share of ₹33.90 provides an asset-backed cushion for a ₹30 Cr market cap.
• Sales growth of 1.38% is positive, despite a sharp profit decline.
• ROCE of 7.85% shows operations still generate some return on capital, though inadequate.

Concerns

• Profit growth is -44.90%, and latest quarter net profit is effectively ₹0 Cr on ₹26 Cr sales, showing almost no margin cushion.
• P/E of 32.33 and PEG of 23.43 are expensive on depressed earnings.
• Piotroski F-score of 4/9 suggests weak fundamentals and deteriorating financial health.
• No dividend, and debt/equity and promoter holding data are unavailable, leaving governance and leverage unclear.

AI Analysis

When I look at Pasupati Spinng, the first thing I see is a classic Graham-style asset situation: the market price of ₹32 is below book value of ₹33.90, making the P/B 0.94. At ₹30 crore market cap, the market is not paying much for this textile business. But cheap is never enough. The real question is whether the assets can generate acceptable profits. Here, ROE is only 3.09% and ROCE is 7.85%; that is barely above bank deposit rates and far below what a commodity textile business needs to build intrinsic value. Sales growth of just 1.38% shows no momentum, and profit growth has collapsed by 44.90%. The latest quarter's net profit is effectively zero on ₹26 crore of sales, meaning no margin cushion. The trailing P/E of 32.33 is therefore meaningless because earnings are depressed and falling; the PEG ratio of 23.43 makes that clear. Piotroski F-score of 4/9 reinforces the picture of weak fundamentals. There is no dividend, so minority shareholders are not being paid to wait. While I prefer wonderful businesses at fair prices, Graham also taught me to look at assets, and this is an asset play, not a quality compounder. I cannot assess debt or promoter holding because the data is not provided; that is a red flag for governance and financial risk. My discipline requires a margin of safety in both asset value and earning power. The asset backing gives some support, but without improving returns on equity and capital, the book value could shrink or continue to earn a poor return. I would wait for evidence of operational improvement, better margins, or a meaningful change in capital allocation before acting. This is a possible value situation, but not yet a convincing investment.

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