Suryavanshi Spg. (514140)

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

Key Financials

Strengths

• Statistically cheap on trailing P/E of 6.54, with price at ₹24.81 and market cap ₹12 Cr, if earnings were recurring.
• Recent reported momentum: sales growth of 933% and profit growth of 1000%, though from a very low base.
• Piotroski F-Score of 6/9 points to some year-on-year financial improvement.
• Price is near the upper end of the 52-week range of ₹15.00–₹24.99, indicating market interest.

Concerns

• ROE of -44.24% and ROCE of -6.70% indicate underlying capital destruction and poor operating returns.
• Latest quarter net profit of ₹3 Cr exceeds sales of ₹2 Cr, raising doubts about earnings quality and possible non-operating income.
• Critical data missing: book value, debt/equity, and promoter holding make it impossible to assess solvency or governance.
• Zero dividend and a tiny ₹12 Cr market cap make this a speculative, potentially illiquid investment.

AI Analysis

At ₹24.81, Suryavanshi Spg. has a market cap of just ₹12 crore. A price-to-earnings ratio of 6.54 looks like a Graham bargain, but I cannot stop there. The business shows ROE of -44.24% and ROCE of -6.70%. That means the underlying enterprise is destroying capital, not compounding it. The latest quarter reports sales of only ₹2 crore but net profit of ₹3 crore. Profit exceeding revenue is a red flag; earnings may include extraordinary or non-operating items, not recurring textile manufacturing income. Sales growth of 933% and profit growth of 1000% sound spectacular, but from a tiny base and with negative returns, they tell me nothing about durable competitive advantage. Textiles is a competitive commodity business with no moat visible in these numbers. Book value, debt-equity, and promoter holding are N/A, so I cannot assess financial strength or aligned ownership. Dividend is zero. A Piotroski F-Score of 6/9 is mildly encouraging, but it is not enough to overcome the absence of audited clarity. PEG of 0.01 is meaningless when current earnings quality is questionable and returns are negative. The stock trades near its 52-week high of ₹24.99, and with a ₹12 crore market cap, liquidity and governance risks are real. In Graham's language, this is a speculative situation, not a defensive investment. I need margin of safety: positive book value, clean cash flow, and evidence that the reported profit is from operations. Until then, Suryavanshi is a possible turnaround to watch, not a position I would own.

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