Samtex Fashion (521206)

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

Key Financials

Strengths

• Latest reported quarterly net loss is only -₹0 Cr, suggesting no major visible cash burn.
• Book value is positive at ₹0.02 per share, so there is some residual equity, however tiny.
• Piotroski F-Score of 5/9 is not a complete failure on financial-health metrics.
• Reported profit growth is +45.45%, though from a negligible base.

Concerns

• Latest quarter sales are ₹0 Cr; there is no operating revenue to value.
• P/B of 129.50 means the market cap of ₹20 Cr is about 129.5 times the per-share book value.
• ROE at -193.67% and ROCE at -0.12% show capital is being destroyed and earns almost no return.
• No promoter holding, no dividend, and P/E of 0.00 offer no signs of alignment or earnings support.

AI Analysis

At ₹2.59, Samtex Fashion carries a market cap of ₹20 Cr against a book value of just ₹0.02 per share. That is a price-to-book ratio of 129.5 times. Graham taught me that price is what you pay, value is what you get; here you are paying ₹129.5 for every rupee of stated book value. Worse, that stated book value is backed by almost no earning power. The latest quarter has sales of ₹0 Cr and net profit of minus ₹0 Cr. The company is not generating any real business. A ROE of -193.67% tells me the small equity base is being destroyed, not built. ROCE of -0.12% confirms capital is earning nothing. A P/E of 0.00 is not a bargain signal; it is meaningless when earnings are zero or negligible. Profit growth of 45.45% on a negligible or loss-making base is a statistical illusion. With no dividend and no promoter holding data, I have no reason to trust management or expect shareholder rewards. The Piotroski F-score of 5/9 is moderate, but with zero sales it cannot compensate for the absence of operations. This is not a business I can analyze with conviction. It is a shell-like entity trading at a huge premium to net worth. It fails every test: no durable competitive advantage, no predictable earnings, no evidence of honest capital allocation, and no margin of safety. The 52-week range of ₹1.05 to ₹2.83 suggests speculative trading. As a value investor, I would rather miss a speculative bounce than risk permanent capital in a company with no revenue and a negative return on equity.

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