Shubham Polyspin (542019)

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

Key Financials

Strengths

• Net profit grew 15.79% even while sales fell 20.19%, suggesting some cost discipline on a very low base.
• Piotroski F-score of 6/9 indicates moderate financial health across profitability, leverage and efficiency metrics.
• Book value of ₹13.18 provides a tangible asset cushion; P/B of 1.68 is not extreme for a going concern.

Concerns

• P/E of 92.32 is exorbitant for a business with declining sales; earnings yield is roughly 1%.
• Latest quarter net profit is ~₹0 Cr, so the reported profit growth is not translating into meaningful current earnings.
• ROE of 5.18% and ROCE of 6.78% are inadequate for an operationally risky textile microcap.
• Zero dividend yield, undisclosed debt/equity, and undisclosed promoter holding reduce transparency and income support.

AI Analysis

As a value investor, I first ask whether the business earns more than the capital it consumes. Shubham Polyspin does not. Return on equity is just 5.18% and ROCE is 6.78% — numbers that barely clear fixed-deposit rates and give no cushion for a textile business with zero pricing power. Sales fell 20.19% in the latest period, and though net profit rose 15.79%, the latest quarter shows ₹11 crore sales and virtually zero net profit. That's not being conservative; it's a warning. The price of ₹22.10 capitalises the company at ₹28 crore, and a P/E of 92.32 means I'm asked to pay for almost a century of current earnings. The book value is ₹13.18, so I'm also paying 1.68 times book for a 5% ROE. Graham would say: no margin of safety. There is no dividend to compensate while I wait. The stock has fallen from ₹79 to ₹22.10, trading below the 52-week low, which tells me the market has seen deteriorating fundamentals, not a buying opportunity. Piotroski F-score of 6 suggests moderate financial health, and profit growth is positive, so it's not a bankrupt balance sheet — but that's faint praise. Debt/equity isn't disclosed, so I cannot fully judge leverage. This is a tiny microcap in a commoditised industry; no moat, no scale, no pricing power. At best this is a turnaround speculation, not a compounding investment. I would need years of stable sales, rising returns, and management with skin in the game before committing capital. For now, patience is the right position.

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