Alstone Textiles (539277)

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

Key Financials

Strengths

• Latest quarter net profit is positive at ₹3 Cr, showing some profitability.
• ROE of 4.10% is positive, so equity is not being eroded by losses.
• Piotroski F-Score of 5/9 suggests no immediate financial distress on basic metrics.
• Reported trailing P/E of 14.82 is not extreme if the earnings are genuine and sustainable.

Concerns

• Latest quarter sales are ₹0 Cr; zero revenue means the profit is not from core business.
• ROCE is negative at -0.09%; capital employed is earning no operating return.
• P/B of 2.89 means paying ₹0.78 for every ₹0.27 of book value—no margin of safety.
• Zero dividend, negligible sales growth, and insufficient data make the 1000% profit growth unreliable.

AI Analysis

Let's look at Alstone Textiles as Graham would: a distributor with no sales in the latest quarter and zero sales growth. A business that doesn't sell anything cannot be valued on earnings alone. The ₹3 Cr net profit in the quarter is interesting, but with ₹0 Cr sales it is likely non-operating, one-off, or financial engineering. A 1000% profit growth sounds spectacular, but with a tiny base it tells us nothing. ROCE is -0.09%, meaning capital employed is earning negative returns; ROE of 4.10% is barely above a fixed deposit, not a compounding machine. At ₹0.78, I pay 2.89 times book value of ₹0.27. There is no margin of safety. The P/E of 14.82 is meaningless if earnings are not from sustainable operations. No dividend means the retail shareholder is totally dependent on someone else paying a higher price. Promoter holding is N/A, which is unacceptable for a value investor. I cannot trust what I cannot measure. This has the appearance of a turnaround because profits have appeared, but with zero sales and negative ROCE, it is a speculative shell, not an enterprise. Graham would say price is what you pay, value is what you get. Here I cannot determine value with these numbers. At best, monitor whether real sales emerge and whether profits become recurring.

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