Simplex Mills (533018)

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

Key Financials

Strengths

• Tiny ₹11 Cr market cap keeps absolute rupee exposure small for a monitored speculative position.
• Reported trailing ROE of 2.22% is positive, though very thin, indicating some equity earnings before the latest deterioration.
• The NSE/BSE listing provides transparent price data and an exit window for existing shareholders.

Concerns

• Latest quarter sales are ₹0 Cr and net profit is -₹0 Cr; revenue has essentially dried up.
• Sales growth is -33.33% and profit growth is -300%, showing accelerating business decline.
• Piotroski F-Score of 2/9 and ROCE of 0% signal very weak financial health and poor capital deployment.
• No dividend, no book value, no promoter holding data, and no debt/equity details—critical information is missing for a Graham-style margin of safety.

AI Analysis

When I analyze Simplex Mills, I am reminded of Graham's warning: the function of a value investor is to invest in facts, not hopes. Here the facts are alarming. This is an ₹11 crore market cap textile company, yet its latest quarter shows sales of ₹0 crore and net profit of -₹0 crore. Sales have fallen 33%, and profit growth has swung by -300%. A Piotroski F-Score of 2 out of 9 tells me financial health is poor. ROCE is zero, dividend is zero, and I have no promoter holding or debt-to-equity data to judge alignment or leverage. Book value is unavailable, so P/B and even P/E at zero are not valuation metrics—they are red flags. The price is ₹3515.50, but the 52-week range was ₹4800 to ₹5453. The stock is trading below its own 52-week range, which is not a sign of a bargain; it is a sign that the market is repricing a deteriorating situation. A 2.22% ROE on a tiny capital base provides no comfort. With latest profit negative, even that small positive is at risk. Can I value this business? No. There are no earnings, no dividend, no growth, and no asset figures I can trust. Graham would demand a margin of safety. An ₹11 crore market cap may look small, but small companies can become zero. Without revenue, disclosed book value, or positive returns, this is not an investment—it is a lottery ticket. I need proof of operations or a clear asset value before I would even consider it. Until then, I pass. Let the numbers speak; they are saying 'stay away'.

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