Winsome Textile (514470)

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

Key Financials

Strengths

• P/B of 0.53 means the stock trades at ₹81.69 against book value of ₹153.14, offering a deep asset-value margin of safety.
• Trailing P/E of 5.76 is low, though earnings quality needs scrutiny.
• ROCE of 14.61% indicates core operations generate decent returns on capital employed.
• Latest quarter sales of ₹208 Cr are sizeable relative to market cap of ₹164 Cr, implying a low sales multiple.

Concerns

• Profit growth is negative at -3.28%, and latest quarter net profit of ₹5 Cr on ₹208 Cr sales is a thin 2.4% margin.
• Piotroski F-Score of 4/9 suggests weak fundamental health and possible balance-sheet stress.
• No dividend yield means shareholders receive no income while waiting for value to unlock.
• Debt/Equity and promoter holding are N/A, leaving leverage and insider alignment unverifiable.

AI Analysis

When I look at Winsome Textile, I try to forget the stock price and see the business. At ₹81.69, the market capitalises it at only ₹164 crore, while the book value stands at ₹153.14 per share. That means I am effectively paying 53 paise for every rupee of stated net worth. That is a substantial margin of safety if the balance sheet is honest. But cheapness alone is not enough. The trailing P/E of 5.76 looks tempting, yet profit growth is down 3.28% and the latest quarter shows just ₹5 crore profit on ₹208 crore of sales, a thin margin. Return on equity is only 8.87%, so the business is not compounding shareholder wealth at a high rate. ROCE at 14.61% is somewhat better, suggesting the core operations are not bad, but sales growth of 3.47% is pedestrian. There is no dividend; as a shareholder I get no cash while I wait. This is a cyclical textile business, not a branded franchise with pricing power. The Piotroski F-score of 4/9 is a warning flag: fundamental health appears below average. Debt/equity and promoter holding are not disclosed here, so I cannot judge financial leverage or insider alignment. A PEG of 1.66 confirms that once you adjust for weak growth, the low P/E is not as exciting as it first appears. In Graham's language, this may be an asset play rather than an earning-power bargain. The 52-week range of ₹58 to ₹98 also shows the cyclicality. I would only consider buying if I verified asset quality, working capital, and debt levels, and saw evidence that capital allocation is improving. Better to be roughly right and safe than precisely right and sorry. For now, it is a possible value candidate, not a clear Buffett-quality compounding machine.

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