Suryaamba Spinni (533101)
Asset PlayScore breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹150 |
| Market Cap | ₹43.98 Cr |
| P/E Ratio | 11.82 |
| ROCE | 7.29% |
| ROE | 5.2% |
| Dividend Yield | 0.79% |
| Profit Growth | -4.17% |
| Debt/Equity | — |
| Sales Growth | -11.07% |
| 52-Week Range | ₹100.4 — ₹158.55 |
| Sector | Textiles & Apparels |
| Book Value | ₹231.55 |
Strengths
- Trading at a 35% discount to book value of ₹231.55 (P/B 0.65).
- P/E of 11.82 is modest for a profitable small-cap.
- Latest quarter remains profitable: ₹1 Cr net profit on ₹49 Cr sales.
- Small market cap of ₹44 Cr leaves room for a potential re-rating if performance stabilizes.
Concerns
- ROE of 5.20% and ROCE of 7.29% are far below acceptable thresholds for value creation.
- Sales declined 11.07% and profit fell 4.17%, indicating business contraction.
- Piotroski F-score of 3/9 signals weak financial health and possible operational stress.
- Debt/Equity not disclosed; lack of transparency on leverage is a warning flag.
AI Analysis
I find myself intrigued but wary. Suryaamba Spinni trades at ₹150, just 65% of its book value of ₹231.55. On the surface, this looks like a classic Graham asset play. But a deep value investor must ask why the market prices it so cheaply. The answer lies in the economics. Return on equity is a meager 5.20%, and return on capital employed is only 7.29%. These numbers tell me the business is not generating enough profits on its assets to create real value. Sales have contracted by 11.07% and profits by 4.17%; the latest quarter shows just ₹1 crore net profit on ₹49 crore sales—a thin margin. The Piotroski F-score of 3/9 reinforces my concern: the underlying financial health is fragile. There is simply no moat; textiles are a commoditized, competitive, and cyclical industry. The dividend yield of 0.79% is small compensation. At a P/E of 11.82, the stock is not expensive, but cheapness can be a trap. I would need a clear path to improving returns, stable margins, and transparency on debt since debt/equity is not disclosed. For now, this is an asset play at best—potentially interesting only if management can deploy that book value more efficiently and arrest the decline. I would not buy without a catalyst.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer