Vippy Spinpro (514302)

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

Key Financials

Strengths

• Trailing P/E of 7.65 is inexpensive relative to trailing earnings
• P/B of 1.22 against book value of ₹130.39 provides some asset support
• ROE of 13.73% and ROCE of 13.68% are respectable for a textile manufacturer
• Latest quarter still shows a net profit of ₹2 crore despite industry pressure

Concerns

• Sales growth of -20.61% and profit growth of -38.87% show deteriorating operations
• Piotroski F-Score of 3/9 indicates financial weakness
• No dividend; shareholders get no income while waiting for recovery
• Debt/equity and promoter holding are undisclosed, limiting governance and balance sheet visibility

AI Analysis

At ₹158.65, Vippy Spinpro sells at 7.65 times trailing earnings and 1.22 times book value, while earning 13.73% on equity. Graham would remind me that a low multiple is only meaningful if earnings are dependable. Here they are not. Sales fell 20.61% and profits fell 38.87%. The Piotroski score of 3/9 reinforces this: this is a company showing multiple signs of financial weakening, not hidden strength. What do I actually own? A small textile spinning business, market cap of just ₹94 crore, in a commodity industry where pricing power is rare. No dividend means I am not being paid to wait. With latest quarter net profit of ₹2 crore, annualized earnings are about ₹8 crore, so the true forward earnings yield is more like 8.5%—not terrible, but far less comforting than the trailing P/E suggests. Book value of ₹130 gives some asset backing, but if return on equity keeps shrinking, that book value itself can deteriorate. I cannot judge the balance sheet properly because debt/equity is not available, and promoter holding is not available. A value investor does not like missing information. The F-score of 3 tells me the recent direction is poor: shrinking margins or rising assets and weaker cash flows are likely at work. The 52-week range shows the stock already fell from ₹184 to ₹130, yet at ₹158 it is not at the distressed low. This is a cyclical, not a stalwart. Textile demand can recover, but I need proof of stabilization before investing. I would wait for at least one or two quarters of improving sales and profits, and a better Piotroski score, before treating this as a bargain.

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