Shine Fashions (543244)

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

Key Financials

Strengths

• ROCE of 47.55% shows strong capital efficiency.
• Profit growth of 59.55% on sales growth of 28.06% indicates operating leverage.
• P/E of 7.01 and PEG of 0.16 suggest inexpensive relative to growth.
• Piotroski F-Score of 7/9 points to healthy fundamental signals.
• Latest quarter sales of ₹43 Cr and net profit of ₹5 Cr support recent momentum.

Concerns

• Insufficient data on book value, debt/equity, and promoter holding limits margin-of-safety analysis.
• Price has moved from ₹18 to ₹304.15 in the 52-week range; much of the good news may be priced in.
• Dividend yield of 0.06% means minimal income cushion for investors.
• Textiles are competitive and low-moat, leaving margins subject to cyclical and raw material pressures.

AI Analysis

Looking at Shine Fashions, I am reminded that a low price alone never makes a bargain. At ₹304.15, the market cap is just ₹93 crore, so this is a microcap. On the surface, the numbers are eye-catching: ROCE of 47.55% is a genuinely strong sign; the company earns nearly ₹48 of operating return on every ₹100 of capital employed. Sales grew 28.06% and profit jumped 59.55%, which speaks to real operating leverage. A P/E of 7.01 and PEG of 0.16 imply the market is paying very little for that growth, and a Piotroski F-score of 7/9 suggests decent financial health. The latest quarter adds sales of ₹43 crore and net profit of ₹5 crore, consistent with the momentum. But I must stop and apply Graham's discipline. I have no book value, no debt-to-equity, no promoter holding data. That is not enough information for a margin of safety. The 52-week range of ₹18 to ₹304.15 tells me this has already been discovered; buying after such a move requires more evidence, not less. The dividend yield of 0.06% means shareholders are not being paid to wait. Textiles are a competitive, low-moat "Other Textile Products" business, and a microcap can be volatile. I admire the growth and return on capital, but I would need to see the balance sheet, cash flows, and management's capital allocation discipline before treating this as a Graham-style investment. For now, it's a fast grower, not yet a proven stalwart.

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