Shanti Spintex (544059)

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

Key Financials

Strengths

• ROCE of 13.88% indicates moderately efficient capital use.
• Latest quarter sales of ₹365 Cr provide significant operating scale relative to the ₹126 Cr market cap.
• P/E of 15.09 is not extreme, though earnings are declining.
• Price is trading near the upper end of its 52-week range, showing market interest.

Concerns

• Profit growth is down 44.98%, and the latest quarter net profit of ₹4 Cr on ₹365 Cr sales implies very thin margins.
• Piotroski F-Score of 4/9 suggests weak financial health.
• No dividend is paid, so shareholders receive no income cushion.
• Missing data on book value, debt/equity, ROE, and promoter holding prevents a proper safety margin analysis.

AI Analysis

Shanti Spintex is the kind of business that tests my patience. The numbers tell me this is a commodity textile operator, not a franchise with pricing power. Sales growth of only 2.87% and a 44.98% drop in profits are hardly signs of strength. At ₹73, with a P/E of 15.09, the market is paying a reasonable but not cheap multiple for a business whose earnings are shrinking. The latest quarter shows sales of ₹365 Cr but net profit of just ₹4 Cr — razor-thin margins and vulnerability to cost pressures or price competition. ROCE of 13.88% is decent, but with a Piotroski F-score of 4/9, the financial health is weak. I do not have book value, debt-equity, or ROE data, so I cannot estimate a margin of safety. In Graham's language, this is closer to speculation until the fundamentals improve. There is no dividend, so shareholders get no return while waiting for operational performance. A PEG of 5.26 suggests the growth expectation is too rich relative to actual performance. This looks like a cyclical textile business in a downcycle. The 52-week range shows the price has risen from ₹42.22 to ₹75.00, but profit has gone the other way. That divergence bothers me. If I owned it, I would need to see quarterly sales and profit trends stabilise, margins recover, and complete data on debt and promoter holding. Without that, I cannot place a value on the business. I would rather wait for a better entry price or a demonstrated turnaround. In investing, you do not have to swing at every pitch.

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