Betex India (512477)

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

Key Financials

Strengths

• P/E of 13.60 and P/B of 1.10 provide a modest valuation against book value of ₹237.20.
• Latest quarter shows strong momentum: sales of ₹25 Cr and net profit of ₹4 Cr.
• Piotroski F-Score of 7/9 points to improving financial fundamentals.
• ROE of 12.32% is reasonable for a small-cap textile company.
• Sales growth of 10.45% is positive, even if profit growth is far higher.

Concerns

• Profit growth of 268.52% vastly exceeds sales growth, suggesting a base-effect or margin blip rather than durable compounding.
• Zero dividend yield means no income support while waiting for value to unlock.
• Insider and promoter holding data are unavailable, creating transparency concerns.
• Current price is roughly 60% below the 52-week high of ₹648, indicating significant volatility and possible business cyclicality.

AI Analysis

This is a microcap textile player at ₹259.90, with a market cap of just ₹40 crore. At a glance, the numbers look interesting: a P/E of 13.60, a P/B of 1.10, and a book value of ₹237.20. That is close to the kind of asset-backed entry Graham liked. But the first question I ask is: what is the quality of earnings? Sales grew only 10.45%, yet profit growth was 268.52%. That tells me this is not a smooth compounder; it is a recovery or cyclical bounce. The latest quarter does show sales of ₹25 crore and net profit of ₹4 crore, so momentum may be real. A Piotroski score of 7/9 also suggests the balance sheet and operations are improving. But I see no moat here. 'Other Textile Products' is a competitive, low-differentiation business, and ROCE of 9.56% is mediocre. ROE of 12.32% is decent but not exceptional. You are paying 1.1 times book for a company that trades 60% below its 52-week high of ₹648. That fall alone tells me the market has seen problems before. Dividends are zero, so return must come from price or fundamentals. The PEG of 0.10 is meaningless because it is based on a 268% profit blip; Graham would ignore such optics. I would need more data—particularly debt and promoter holding—before treating this as a value bargain. This is a possible turnaround, but only for a patient small-cap investor who accepts high risk and does not expect a wide-moat business.

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