Wires & Fabriks (507817)

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

Key Financials

Strengths

• Price close to book value (P/B 1.12) offers some asset cushion if the balance sheet is genuine.
• Top-line is stable with 0.65% sales growth, so no immediate collapse in demand.
• Book value of ₹153.45 provides a reference floor for value-oriented investors.
• Small market cap of ₹53 Cr creates potential for a special-situation or asset unlock opportunity.

Concerns

• Profit growth collapsed by 88.41% and latest quarter net profit is ₹0 Cr, showing earning power has vanished.
• ROE of 0.86% and ROCE of 6.18% are far too low to create shareholder value.
• Piotroski F-Score of 4/9 signals weak financial health and operational deterioration.
• P/E of 108.45 and PEG of 166.85 make the stock expensive on current earnings; dividend yield is negligible at 0.07%.

AI Analysis

At ₹172.60, this is not a stock I would normally spend five minutes on. Market cap is just ₹53 Cr against a book value of ₹153.45 per share, so you are paying roughly 1.1 times book. Graham would say you are paying a small premium for assets, so the margin of safety is thin. But a business is worth only what its assets can earn. Here ROE is 0.86% and ROCE is 6.18% — it barely generates returns above a bank deposit. The latest quarter net profit is zero on ₹29 Cr of sales, and profit growth has collapsed by 88.41%. A P/E of 108.45 and a PEG of 166.85 are not value signals; they are warnings that earnings have vanished. Sales growth of 0.65% confirms this is dormant, not growing. The Piotroski F-score of 4/9 reinforces weak financial health and operational deterioration. Dividend yield of 0.07% means you won't be paid to wait. Textile products is a commodity-like industry with little pricing power. I see no durable competitive moat. Could there be hidden value in the assets? Perhaps, but asset-heavy textile companies often carry old machinery and inventory that fetch far less in liquidation. I prefer businesses with consistent earnings and high returns on equity. This fails that test. It might be a special-situation asset play for a deep-value investor willing to audit the balance sheet, but it is not a compounder. Unless management shows a clear plan to lift ROCE above the cost of capital, I will watch from the sidelines.

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