Suditi Industrie (521113)

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

Key Financials

Strengths

• Latest quarter shows positive net profit of ₹1 Cr on sales of ₹22 Cr, indicating some operating traction.
• ROCE of 29.66% suggests decent operational return on capital employed.
• Piotroski F-Score of 6/9 points to moderate financial quality rather than acute distress.
• Profit growth of 7.26% offers a small positive sign despite weak top line.

Concerns

• ROE of -2496.28% implies severely impaired or negative net worth, a major red flag.
• Sales declined by 6.71%, showing shrinking business in a competitive textile industry.
• Valuation is expensive at P/E of 34.58 and PEG of 4.76, with zero dividend.
• The stated 52-week range of ₹52-₹108 is inconsistent with the current price of ₹13.11, raising data reliability concerns.

AI Analysis

Dear investor, when I look at Suditi Industrie, I see a textbook illustration of why I prefer wonderful businesses at fair prices over troubled companies at any price. The numbers here do not inspire confidence. A textile business with ₹35 crore market cap, trading at 34.58 times earnings, while sales have fallen 6.71%. Any growth in profit—7.26%—is too small to justify a PEG near 4.76. And a negative return on equity of -2,496% tells me the equity cushion has been destroyed; book value is meaningless or negative. Graham would remind us that a company without a strong balance sheet is speculation, not investment. The positive ROCE of 29.66% and a Piotroski score of 6/9 offer a small flicker of operational efficiency, and the latest quarter did show ₹1 crore profit on ₹22 crore sales. But one quarter does not make a franchise. Textiles are a brutally competitive, cyclical commodity business. There is no pricing power, no moat, no dividend, and no promoter data to reassure me. At ₹13.11, the share is far below its stated 52-week range, making me question data reliability as much as business quality. If this is a genuine turnaround, I need years of audited balance sheets, low or zero debt, and sustainable cash profits before I value it. Until then, the margin of safety is absent. This is not a wonderful company at a fair price; it's a weak company at an unsupported price.

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