Parmeshwari Silk (540467)

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

Key Financials

Strengths

• P/E of 3.64 and P/B of 0.57 offer a deep margin of safety on reported earnings and book value
• ROE of 16.73% is decent, indicating the existing asset base earns a reasonable return
• Latest quarter sales of ₹72 Cr with net profit of ₹3 Cr shows the business is still generating profits
• Sales growth of 8.35% shows some traction despite industry headwinds

Concerns

• Profit growth is negative at -9.21%, so profitability is deteriorating despite higher revenue
• Piotroski F-Score of 4/9 signals weak overall financial health and possible red flags
• No dividend means shareholders receive no cash return while waiting for value to unlock
• Promoter holding and debt/equity are not disclosed, leaving critical governance and leverage questions unanswered

AI Analysis

At ₹94.82, Parmeshwari Silk catches the eye of a Graham-style investor. The P/E is just 3.64 and the book value is ₹166.35, so I am paying only 57% of book. That is a deep discount on paper. ROE of 16.73% is respectable, and the latest quarter shows sales of ₹72 Cr with net profit of ₹3 Cr, so the business is not idle. But I must ask: why is the market pricing it so low? Profit growth is down 9.21% despite sales growth of 8.35%, meaning margins are being squeezed. The Piotroski F-Score of 4 out of 9 is a red flag; it suggests weakening financial health, not a pristine bargain. There is no dividend yield, so I get no income while waiting for the market to recognise value. Promoter holding is not disclosed, and without that data I cannot judge whether insiders are aligned with minority shareholders. Debt/Equity is also unavailable, so I cannot fully assess balance sheet risk. This looks like an asset play rather than a compounding machine. The textile industry is capital-intensive and lacks durable pricing power; I see no strong moat. A low P/B and P/E can be a value trap if earnings keep falling or the assets are worth less than stated. I would need evidence of stable profits, better cash flow, and clearer disclosure before committing capital. In Graham's tradition, cheap is only attractive when it is also safe. Here, the margin of safety is real on paper, but the fundamentals are deteriorating. I would keep this on my watchlist, not in my portfolio.

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