Patspin India (514326)

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

Key Financials

Strengths

• Piotroski F-Score of 6/9 signals some recent fundamental improvements across profitability, leverage, or operating efficiency.
• Reported ROE of 39.05% suggests high historical profit per unit of equity, though book value data is missing.
• Sales growth of 2.04% and latest quarter revenue of ₹11 Cr show the business is still generating revenue.
• Reported 20.29% profit growth may indicate a smaller loss compared to the prior period.

Concerns

• Latest quarter net loss of ₹3 Cr against ₹11 Cr sales means the company is loss-making at the net level.
• ROCE of -4.86% shows operating capital is being eroded, not enhanced.
• P/E 0.00, book value N/A, and debt/equity N/A make balance-sheet health impossible to verify, a major red flag.
• No dividend and no promoter holding disclosure reduce confidence in shareholder-friendly stewards.

AI Analysis

At first glance, Patspin India looks cheap at ₹16.12 with a ₹50 Cr market cap, but cheap can be a trap. I don't invest in businesses I can't understand, and a textile producer with a negative return on capital does not excite me. The latest quarter tells the story: sales of only ₹11 Cr and a net loss of ₹3 Cr. That means the company is losing money at the operating level; ROCE of -4.86% confirms capital is being destroyed. The reported ROE of 39.05% looks impressive, but when book value and debt/equity are unavailable, I suspect a very thin or even negative equity base, making percentage returns unreliable. P/E of 0.00 is not 'cheap'; it is a sign that earnings are absent or negative. A 2.04% sales growth is barely inflation, and the so-called 20.29% profit growth may simply be a smaller loss. With no dividend and no promoter holding data, I have little evidence of a long-term owner mindset. The Piotroski score of 6/9 is the only positive, suggesting some recently improving fundamentals, but that is not enough for a margin of safety. This is a cyclical textile name at its 52-week high, yet still losing money. Benjamin Graham would demand a clear path to profits, a strong balance sheet, and a price below tangible book value. Patspin offers none of that. I would rather watch from the sidelines, wait for a real turnaround, or a price that compensates for the risk. This is not a wonderful business at a fair price; it is a struggling business at an uncertain price.

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