Haria Apparels (538081)

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

Key Financials

Strengths

• Latest quarter sales of ₹3 Cr show the company still has an operating base.
• ROE of 14.44% and ROCE of 15.08% indicate decent capital efficiency if maintained.
• Book value of ₹3.27 and P/B of 1.73 offer some, though limited, downside cushion.
• Small market cap of ₹9 Cr leaves room for operational leverage if business stabilizes.

Concerns

• Profit growth of -124% means earnings are negative or near zero, making the P/E unreliable.
• Piotroski F-Score of 3/9 suggests weak financial health and deteriorating fundamentals.
• Sales growth of 0.00% and latest quarter net profit of ~₹0 Cr show no growth engine.
• No dividend, no promoter holding data, and no debt-equity information reduce transparency.

AI Analysis

When I look at Haria Apparels, I see a small textile business selling at ₹5.65 with a market capitalisation of just ₹9 crore. In Benjamin Graham's language, a stock is not an investment unless it passes basic tests of stability, earnings power, and financial strength. Here, sales growth is flat at 0.00%, and profit growth has collapsed by 124%. The latest quarter shows sales of only ₹3 crore and net profit of essentially zero. That is not a business compounding for owners; that is a business struggling to keep its head above water. The reported P/E of 10.32 is almost meaningless when earnings are falling this sharply. I would not pay 1.73 times book value of ₹3.27 for a commodity textile operation with no pricing power and no evidence of a moat. The Piotroski F-score of 3/9 is a red flag: it tells me the balance sheet and operating efficiency are deteriorating. The returns on equity and capital, 14.44% and 15.08%, look respectable, but those are backward-looking; the trend is in the wrong direction. There is no dividend yield, so patient shareholders receive nothing while they wait. I do not see a margin of safety. In fact, I see the opposite: a microcap with negative earnings momentum, unknown promoter holding, and inadequate data. Graham would say that when the numbers are this weak and the data so thin, the rational investor walks away. Without a clear catalyst, this is speculation in a cyclical textile space. I would need to see a return to positive annual profits, flat or improving sales, and a stronger Piotroski score before I would give this any serious thought.

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