Active Clothing (541144)

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

Key Financials

Strengths

• Piotroski F-Score of 6/9 suggests acceptable financial health.
• ROE of 13.80% and ROCE of 11.74% show reasonable capital efficiency.
• Modest valuation: P/E of 12.58, P/B of 1.94, and PEG near 1.10.
• Profit grew 11.46% despite a 3.45% sales decline, indicating margin discipline.
• Latest quarter remains profitable: ₹4 Cr net profit on ₹96 Cr sales.

Concerns

• Revenue contraction: sales growth is negative, so earnings growth relies on margins or cost cuts.
• No dividend: 0% yield leaves minority shareholders dependent only on price appreciation.
• Insufficient disclosure: debt/equity and promoter holding are N/A, limiting assessment of leverage and governance.
• Small-cap garment maker in a competitive, low-moat industry; stock is near the lower end of its 52-week range.

AI Analysis

Let me start with what I can see. Active Clothing is a small garment maker, and I have always said I only invest in businesses I can predict. Garments is a tough, fashion-driven, low-moat industry. The numbers here tell a mixed story. The company earns a reasonable 13.8% return on equity and 11.7% on capital employed. The trailing P/E is 12.58, and at ₹97.70 the market cap is just ₹152 Cr, 1.94 times book value of ₹50.36. That is not an expensive price. Profit grew 11.46%, but sales actually fell 3.45%. In my book, that means the improvement is coming from margins or cost cutting, not from demand. A business that cannot grow its top line has to be watched closely. The latest quarter shows ₹96 Cr sales and ₹4 Cr net profit, so it is earning money, but I see no dividend. A 0% yield means the minority shareholder is completely dependent on capital gains. The Piotroski score of 6 out of 9 is comfortable, but the debt/equity ratio and promoter holding are not disclosed, and I cannot properly assess risk without leverage and ownership data. The 52-week range of ₹86 to ₹156 tells me the market has already punished this stock. With a PEG near 1.1, the price partly reflects the recent profit growth. This is not a wonderful franchise with a durable moat; it is an ordinary garment business at a fair price. Graham would say to demand a margin of safety. I don't see enough of one here until sales growth turns positive and more governance data is available. I would prefer to wait on the sidelines. If the company can stabilize revenue and keep return on capital above 12%, then perhaps it becomes interesting. Not yet.

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