Hisar Spg. Mills (521068)

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

Key Financials

Strengths

• Trades at P/E of 6.47 and P/B of 0.70, a 30% discount to book value of ₹65.60 per share.
• ROE of 15.81% and ROCE of 15.13% indicate decent capital efficiency for a small textile firm.
• Reported profit growth of 41.86% and PEG of 0.15 suggest earnings momentum, though sales declined.
• Piotroski F-Score of 6/9 points to reasonable financial health across profitability, leverage, and efficiency.

Concerns

• Sales declined 7.11%, so the sharp profit growth may be cost-driven or one-off rather than durable top-line expansion.
• No dividend is paid, so investor returns depend entirely on price appreciation and capital gains.
• Promoter holding and debt/equity are not disclosed, which is a transparency warning sign for a micro-cap.
• Latest quarter net profit of ₹1 crore on sales of ₹11 crore shows thin margins and vulnerability to input cost or demand swings.

AI Analysis

At ₹45.99, Hisar Spinning Mills is a tiny textile micro-cap with a market cap of just ₹18 crore. The numbers on the surface look interesting: the stock trades at 6.47 times earnings and only 0.70 times book value, while book value stands at ₹65.60 per share. That is a 30% discount to what the balance sheet says the equity is worth. Graham would be drawn to that. ROE is 15.81% and ROCE is 15.13%, so the company is not just a bag of assets—it is earning a decent return on capital. Piotroski F-Score of 6 out of 9 also hints at a fundamentally solid small business. But I have to pause. Sales shrank 7.11% in the latest period even as profits grew 41.86%. That mismatch bothers me. It could be cost discipline, a one-off gain, or a cyclical textile upswing—but it is not the organic compounding I look for. The latest quarter shows ₹11 crore in sales and ₹1 crore in net profit. That is a razor-thin margin, vulnerable to cotton prices, exchange rates, or an order slowdown. There is no dividend, promoter holding is not disclosed, and the debt-equity figure is unavailable. For a ₹18 crore company, lack of transparency is a red flag. The 52-week range of ₹40.80 to ₹66.40 also tells me this is a volatile, illiquid stock where your buy price and exit price will matter enormously. I look for wonderful businesses with durable moats. This appears to be a commodity-like textile asset trading below book value. If management is honest and the balance sheet is solid, it may offer a margin of safety. But I would not call it a great business—it is a statistical bargain, an asset play, and it demands deep digging before committing a single rupee.

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