Gini Silk Mills (531744)
TurnaroundScore breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹138.2 |
| Market Cap | ₹81.97 Cr |
| P/E Ratio | 20.18 |
| ROCE | 3.23% |
| ROE | 3.44% |
| Dividend Yield | 0% |
| Profit Growth | -37.14% |
| Debt/Equity | — |
| Sales Growth | -4.6% |
| 52-Week Range | ₹42.51 — ₹138.2 |
| Sector | Commercial Services & Supplies |
| Book Value | ₹87.11 |
Strengths
- Book value of ₹87.11 per share provides some tangible asset backing.
- P/B of 1.59 is not an extreme asset premium for a going concern.
- Latest quarter still generated ₹9 crore in sales, indicating ongoing business activity.
Concerns
- ROE of 3.44% and ROCE of 3.23% are far too low to create shareholder value.
- Profit growth is down 37.14% and sales growth is down 4.60%, with latest quarterly net profit at ₹0 crore.
- Piotroski F-Score of 3/9 points to weak financial health.
- P/E of 20.18 with zero dividend yield leaves no margin of safety for a shrinking earnings stream.
AI Analysis
At ₹138.20, Gini Silk Mills has a market cap of ₹82 crore. I begin with returns on capital. The company earns only 3.44% on equity and 3.23% on capital employed. That is far below a reasonable owner's required return, and it tells me this is not a franchise with pricing power. The latest quarter shows sales of ₹9 crore and net profit of ₹0 crore—essentially no earnings. Trailing profits have fallen 37.14% while sales dropped 4.60%. Sales are not even holding steady; they are contracting. This is not a growth story; it is a shrinking story. The Piotroski F-score of 3 out of 9 reinforces the picture of financial deterioration. Now valuation: at a P/E of 20.18, the market is paying over twenty times a shrinking earnings stream. The book value is ₹87.11, so the price is a 59% premium to net worth. Benjamin Graham taught me to buy with a margin of safety, not to pay a premium for a mediocre small-cap trading and distribution company. There is no dividend yield, so the shareholder earns nothing while waiting. The stock sits at its 52-week high of ₹138.20, but price momentum is not a substitute for intrinsic value. I would rather miss this move than participate in a business where returns on capital are so low. For me to become seriously interested, I would need to see margins improve, profit turn meaningfully positive, and the price offer a clear discount to book value. I cannot find a catalyst or a margin of safety. Until then, this is a poor business wearing an expensive price tag.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer