Supertex Inds. (526133)

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

Key Financials

Strengths

• Trades at a deep discount to book value: P/B of 0.36 against book value of ₹27.75 per share.
• Market cap of only ₹11 Cr leaves room for special situations or asset unlock potential.
• ROCE is positive at 5.73%, indicating some capital efficiency despite negative earnings.
• Latest quarter revenue of ₹11 Cr with near-breakeven profit suggests no large cash burn at current levels.
• Price is near the upper end of the 52-week range, showing some market interest.

Concerns

• Sales growth declined by 48.83%, indicating severe demand or business contraction.
• Profit growth of -175% and negative ROE of -2.05% mean shareholder value is eroding.
• Piotroski F-Score of 3/9 points to weak financial health and possible balance-sheet stress.
• No dividend and no promoter holding data create governance and return uncertainty.

AI Analysis

At ₹9.96, Supertex Inds. looks like a classic Graham-style asset play: market cap of just ₹11 Cr against a book value of ₹27.75 per share, so the stock trades at 0.36 times book. That is a deep discount, and Mr. Market seems to have noticed, with the price near the top of its 52-week range of ₹4.50 to ₹9.96. But a low P/B is not enough. The business itself is deteriorating: sales fell by 48.83%, profit growth is minus 175%, and ROE is a negative 2.05%. The latest quarter shows sales of ₹11 Cr but net profit of roughly ₹0 Cr, meaning operations are barely breaking even, if that. Piotroski F-Score of 3 out of 9 reinforces my caution—this is not a financially healthy business. The positive ROCE of 5.73% offers some comfort, but in a capital-intensive, low-moat textile industry, that return is hardly compelling. With no dividend and promoter holding not disclosed, I lack visibility into whether management is aligned with minority shareholders. This is not a compounder; it is a possible cigar-butt, but only if the book value is real and can be unlocked. A P/B of 0.36 can be a value trap if assets are overvalued on the books or working capital keeps bleeding. I would need audited balance-sheet details, cash flow, debt numbers, and promoter intent before acting. For now, I classify this as an asset play, not a quality business.

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