Gujarat Hy-Spin (540938)

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

Key Financials

Strengths

• Latest quarter revenue of ₹37 Cr implies annualized sales of roughly ₹148 Cr against a market cap of ₹22 Cr, a low price-to-sales multiple.
• Trailing P/E of 188 indicates the company is marginally profitable, not in a full-year loss.
• ROCE is positive at 4.09%, suggesting operations generate some return, though very weak.
• The stock has corrected sharply from its 52-week high of ₹27.00, reducing expectations embedded in the price.

Concerns

• Sales growth is deeply negative at -19.35%, showing a shrinking business.
• Latest quarter net profit is effectively ₹0 Cr or a loss, making the P/E of 188 misleading.
• Piotroski F-Score of 3/9 signals weak financial health and deteriorating fundamentals.
• No dividend, no promoter holding data, no book value, and no debt-equity data leave the balance sheet opaque.

AI Analysis

Look at the numbers and I see a business I'd rather watch than own. Market cap ₹22 crore with a P/E of 188. That is not value; it is a tiny denominator. Sales latest quarter ₹37 crore, but sales declined 19.35%. Annualizing that quarterly figure gives roughly ₹148 crore in revenue, so the market prices this company at a fraction of sales. But a low price-to-sales is not a margin of safety. A company that cannot turn meaningful revenue into profit is a wealth destroyer, not a compounder. Return on capital employed is just 4.09%, far below what a textile business must earn to justify its capital. The Piotroski F-Score is 3/9, a poor sign. Latest quarter net profit is near zero or a small loss. There is no dividend, and promoter holding, book value, and debt-equity are not disclosed, so I cannot even assess financial strength. In Graham's language, this is a speculative issue: a low price but no evidence of durable earning power. Textiles are cyclical and intensely competitive. There is no moat, no pricing power, and no brand strength. The 52-week range of ₹6.19 to ₹27.00 shows extreme volatility driven by sentiment, not fundamentals. I require a margin of safety from earnings and assets, not just from a small market cap. Unless the company can stabilize sales, push ROCE meaningfully higher, and demonstrate real profitability, I would pass. The only possible case here is a turnaround, but I see no evidence to bank on one.

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