Uniroyal Ind (521226)

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

Key Financials

Strengths

• Piotroski F-Score of 7/9 suggests improving financial health across profitability, leverage, and efficiency.
• Sales growth of 8.26% shows some top-line traction despite a challenging textile environment.
• Price of ₹21 is only 1.13 times book value of ₹18.57, offering some asset support if values hold.
• Latest quarter sales of ₹28 Cr against a ₹17 Cr market cap implies a low price-to-sales multiple.
• Profit growth of 200% indicates movement toward profitability, albeit from a negligible base.

Concerns

• ROE is negative at -7.23%, and the latest quarter net profit is ₹0 Cr, meaning no real earnings are being generated.
• P/E of 0.00 and zero dividend yield provide no earnings or income support to justify the price.
• Debt/Equity and promoter holding are N/A, creating a serious transparency gap for a microcap.
• As an 'Other Textile Products' business, it appears commodity-like with no identifiable moat.

AI Analysis

At first glance, this is the sort of small, ignored stock Graham might screen: market cap just ₹17 Cr, price ₹21, and book value ₹18.57. But value investing is not about buying cheap assets; it is about buying decent assets at a discount. Here I struggle to find decent earning power. The P/E is 0.00 because there is no meaningful profit; the latest quarter shows net profit ₹0 Cr on sales of ₹28 Cr. A trailing ROE of -7.23% tells me the business is destroying book value, not compounding it. ROCE of 7.15% is underwhelming for a textile business with no pricing power. Sales growth of 8.26% and profit growth of 200% sound nice, but 200% growth from a zero or negative base is arithmetic noise, not proof of durability. The Piotroski F-score of 7/9 is the one genuinely encouraging sign—it hints that operations and the balance sheet may be healing. Yet at 1.13 times book, I am being asked to pay a premium to net asset value for a subpar return on capital. There is no dividend, no promoter holding data, and debt/equity is not disclosed. In Graham's language, there is no margin of safety. I would not call this a wonderful business; textiles are commodity-like and fragile. This is a possible turnaround, not a stalwart. I will watch whether quarterly net profit turns consistently positive, whether ROCE climbs to 12-15%, and whether the company generates cash instead of eroding book value. Until then, the figures only justify curiosity, not capital.

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