Santosh Fin Fab (530035)
CyclicalScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹33.2 |
| Market Cap | ₹12.32 Cr |
| P/E Ratio | 83.31 |
| ROCE | 5.83% |
| ROE | 2.42% |
| Dividend Yield | 0% |
| Profit Growth | -50% |
| Debt/Equity | — |
| Sales Growth | -19.53% |
| 52-Week Range | ₹20.76 — ₹33.2 |
| Sector | Textiles & Apparels |
| Book Value | ₹15.84 |
Strengths
- Book value of ₹15.84 provides a reference floor, though shares trade at a premium to it.
- The company is still generating some sales (₹3 crore in the latest quarter), so it is a going concern.
- Zero net loss in the latest quarter, indicating the business is at least breaking even currently.
- Stock is within its 52-week range (₹20.76–₹36.81), not in a distressed freefall.
Concerns
- P/E of 83.31 is unsustainable given a 50% profit decline and negative sales growth of -19.53%.
- ROE of 2.42% and ROCE of 5.83% are far below acceptable returns on capital, signaling poor profitability.
- Piotroski F-score of 3/9 points to weak financial health and deteriorating fundamentals.
- No dividend and negligible net profit (₹0 crore in latest quarter) leave shareholders with no immediate return.
AI Analysis
Let's look at Santosh Fin Fab. At ₹33.20, the market capitalizes this textile business at just ₹12 crore. The first thing I see is a red flag: the trailing P/E is 83.31 while net profit has fallen 50% and sales have contracted nearly 20%. In Graham's world, you need a margin of safety, not a multiple that assumes perfection. The return on equity is just 2.42%, and ROCE is only 5.83% — both below what I could earn from a fixed deposit without risking my principal. The Piotroski F-score of 3 out of 9 tells me the financial health is deteriorating. The latest quarter shows net profit of ₹0 crore on sales of ₹3 crore, which means the company is barely breaking even. Book value is ₹15.84, so the stock trades at 2.1 times its stated net worth. That's not an asset play; it's a premium price for a business with no moat in a highly competitive textile industry. There is no dividend to compensate for the risk. I cannot call this an investment. It is speculation. The business is small, cyclical, and showing negative growth. If the fundamentals don't turn, the current valuation becomes absurd. I need to see several quarters of margin expansion and debt reduction before I'd even put this on my watchlist. As Graham said, price is what you pay, but value is what you get. Here, you're paying a steep price for deteriorating value.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer