Garment Mantra (539216)

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

Key Financials

Strengths

• Revenue grew 348.37% and profit grew 1000%, showing exceptional recent momentum
• P/E of 8.61 and PEG of 0.01 appear inexpensive relative to current earnings growth
• Piotroski F-Score of 7/9 indicates broadly improving financial health
• Latest quarterly sales of ₹99 Cr with ₹4 Cr profit demonstrate an active operating base

Concerns

• P/B of 10.13 against book value of ₹0.64 leaves no asset-based margin of safety
• ROCE of only 7.38% signals poor capital efficiency; gap with ROE may imply leverage
• Thin net margin of about 4% is vulnerable to input cost or pricing pressure
• No dividend, undisclosed promoter holding, and stock at 52-week high after a sharp run-up

AI Analysis

At ₹6.48, Garment Mantra looks cheap on a P/E of 8.61, and a PEG of 0.01 screams growth at a bargain. But Graham taught me to be suspicious of percentages from a tiny base. Sales grew 348.37% and profit grew 1000%, yet the latest quarter shows only ₹4 Cr profit on ₹99 Cr sales — a net margin of roughly 4%. That is thin, and in garments, such growth can be order-driven, fleeting, and price-competitive. The book value is just ₹0.64, so at ₹6.48 I am paying over 10 times book for a business with no clear moat. ROCE is only 7.38%, which is weak; the higher ROE of 13.88% may owe more to leverage than to operating strength, and with debt/equity not disclosed, I cannot judge the true balance-sheet risk. The price has run from ₹1.15 to ₹6.48 — a 463% move — so much of the optimism is already in the stock. The Piotroski score of 7 out of 9 is respectable and suggests some fundamentals are improving, but a score that high can occur during a cyclical rebound. There is no dividend, promoter holding is undisclosed, and the company is trading at its 52-week high, leaving little margin of safety. This is a fast grower, but a fast grower in a low-barrier industry needs proof that growth is durable, margins are expanding, and debt is controlled. Without that proof, I would rather wait for a better price or more information.

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