Pasari Spinning (521080)

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

Key Financials

Strengths

• Trailing P/E 24.92 implies positive net earnings of roughly ₹0.64 Cr, showing at least a paper profit.
• ROCE 19.55% suggests the operating capital currently employed earns a decent operating return.
• Current price is at the top of the 52-week range, indicating some market confidence or speculative interest.
• The price has recovered from ₹5.57 to ₹11.07, showing a meaningful rally from the low.

Concerns

• ROE of -475.12% indicates shareholder equity is nearly or completely eroded, leaving no financial cushion.
• Sales growth of -11.76%, profit growth of -18.18%, and latest quarter sales/profit of ₹0 Cr point to a shrinking, stalled business.
• Piotroski F-score of 3/9 suggests weak fundamental health across profitability, leverage, and operating efficiency.
• Book value, debt/equity, and promoter holding are unavailable, making basic Graham safety analysis impossible.

AI Analysis

Let me start with what I can see: Pasari Spinning is a ₹16 crore market cap textile company trading at ₹11.07 with a trailing P/E of 24.92. That P/E implies about ₹0.64 crore of net profit, which sounds positive until you notice ROE is -475.12%. A negative ROE of this magnitude means shareholder equity has been destroyed, likely negative after years of losses. Benjamin Graham drilled into me: a business without a sound equity base is not a candidate for margin of safety. Book value and debt/equity are unavailable; in Graham's language, 'no data' is itself a warning. The latest quarter shows sales and net profit of ₹0 crore. Annual sales fell 11.76% and profit fell 18.18%. So the business is shrinking, not turning around. ROCE of 19.55% catches my eye, but on a tiny capital base it cannot offset a negative equity structure. The Piotroski F-score of 3/9 is poor and tells me cash flow, asset turnover, and leverage quality are weak. There is no dividend, so I am asked to rely solely on capital appreciation. The stock has moved from ₹5.57 to ₹11.07, near its 52-week high, but price momentum is not business performance. In value investing, I need persistent earning power, tangible book value, and management integrity. I have none of those figures, and worse, the numbers I do have point to a financially strained microcap with collapsing sales. If this is a turnaround, it is too early to invest without audited equity details, a funding plan, and proof of renewed demand. I will pass and wait for better facts. Patience is better than speculation.

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