Spenta Intl. (526161)

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

Key Financials

Strengths

• Trades near book value: P/B of 1.13 against book value of ₹105.05, offering some asset downside cushion.
• ROCE is positive at 7.06%, indicating existing capital is generating some operational return.
• Modest dividend yield of 1.18% shows some cash is being returned to shareholders.
• Market cap of ₹35 Cr is small, but the price is not far above stated assets.

Concerns

• Sales declined ~35% and profit growth fell 151%; latest quarter shows ₹9 Cr sales with no net profit.
• ROE is negative at -0.07% and Piotroski F-Score is weak at 3/9, reflecting poor financial health.
• P/E is zero/no earnings; no evidence of a durable moat in a competitive garments industry.
• Promoter holding and debt/equity data are not disclosed, limiting confidence in governance and leverage assessment.

AI Analysis

Spenta Intl is the kind of small-cap garment stock I would normally walk past. There is no earnings power today: the P/E is effectively zero because profits have vanished, and profit growth is down 151%. Sales fell almost 35%, and the latest quarter, with ₹9 crore of sales and no net profit, shows no visible bounce. A Piotroski score of 3 out of 9 tells me the financial health is weak. Garments and apparels is a competitive, low-margin industry, and I see no moat or pricing power here. Yet I cannot ignore the balance sheet. Book value is ₹105.05, while the share price is ₹119.05, so the market is asking only 1.13 times book. That is a modest premium to stated assets. The market cap is only ₹35 crore, so this is a small enterprise, but the asset base gives some cushion. ROCE is positive at 7.06%, meaning the existing capital is earning something, and the 1.18% dividend yield, though small, suggests some cash is being returned to shareholders. As a value investor, I do not buy growth; I buy value. Here growth is clearly negative, with sales falling by 35% and profits turning worse. I would need to see the operations stabilise and return to profitability before I could call this a compelling investment. The missing promoter holding and debt/equity data are also concerns; without them, I cannot judge alignment or leverage properly. This is an asset play, not a quality compounder. If the book value is trustworthy, the downside may be limited at ₹119.05, but there is little evidence of an earnings catalyst. I would put it in the 'too hard' pile unless the next few quarters show a clear improvement in sales and margins.

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