Ashnoor Textile (507872)

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

Key Financials

Strengths

• Price-to-book of 0.82 gives an 18% discount to ₹51.12 book value
• P/E of 7.93 is low if earnings stabilise
• Latest quarter is profitable: sales ₹19 Cr and net profit ₹1 Cr
• ROE 10.48% and ROCE 13.57% indicate the existing capital base still earns a reasonable return

Concerns

• Sales growth of -56.99% and profit growth of -81.54% show severe business contraction
• Piotroski F-Score of 3/9 suggests weak financial health and possible operational strain
• No dividend yield means no income support while waiting for recovery
• Debt/Equity, promoter holding, and FairStock Score are not reported, creating an information gap

AI Analysis

Looking at Ashnoor Textile, I’m reminded that a low price is not the same as a bargain. At ₹41.76, the stock trades at a P/E of 7.93 and at 0.82 times book value of ₹51.12 — an 18% discount to book. That sounds like Graham’s margin of safety. But the operating picture is not reassuring. Sales are down 56.99% and profits down 81.54%. The deterioration tells me this textile business has no obvious moat; if it had pricing power, revenue would not have collapsed so sharply. The Piotroski score of 3/9 reinforces my worry. Financial health looks weak, and there is no dividend yield at all, so any return depends on the stock price turning around. ROE of 10.48% and ROCE of 13.57% look respectable on the surface, but they are calculated on a shrinking capital base. The latest quarter still generated ₹19 Cr sales and ₹1 Cr net profit, so the company is not dead, but it is not thriving either. The FairStock Score is N/A, and debt-equity as well as promoter holding are missing; Graham would insist on knowing who owns the company and how much leverage it carries before trusting the book value. The 52-week range from ₹34.50 to ₹54.00 shows the market is unsure about its direction. This is not a grower or a stalwart. It is at best an early turnaround candidate, and at worst a value trap. I would need to see sales stabilise for a few quarters, profit margins recover, and the F-score improve before putting money to work. For now, I’m watching, not buying.

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