Vashishtha Lux. (544508)

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

Key Financials

Strengths

• P/E of 10.95 offers a modest valuation for a microcap.
• Latest quarter net margin is approximately 14% (₹1 crore profit on ₹7 crore sales).
• ROCE of 35.74% is high if the reported capital base is reliable.
• Small market cap of ₹16 crore could allow meaningful upside from even modest order wins.

Concerns

• Sales growth and profit growth are both 0.00%, indicating stagnation.
• Piotroski F-Score of 3/9 suggests weak underlying financial health.
• No dividend yield means shareholders earn no income while waiting.
• Critical data such as book value, debt-to-equity, and promoter holding are missing, making verification difficult.

AI Analysis

At first glance, Vashishtha Lux looks like the kind of stock Graham would call a cigar butt: a small garment company available at a P/E of 10.95, with a market cap of just ₹16 crore. But I have learned that a low price is only part of the equation. The reported sales growth and profit growth are both 0.00%. That is not stability; it is stagnation. In the apparel industry, where consumer preferences and competition change rapidly, a company that is not moving forward is usually slipping backward. The latest quarter does show sales of ₹7 crore and net profit of ₹1 crore, which translates to a healthy 14% net margin, and the ROCE of 35.74% is impressive on its face. Yet I must ask: return on what capital? With book value, debt-to-equity, and promoter holding all showing as N/A, I cannot verify the quality of the balance sheet or who is steering the ship. The Piotroski F-Score of 3/9 is a serious warning; it suggests deteriorating fundamentals, not a robust business. There is also no dividend, so a patient shareholder earns nothing while waiting. Valuation may be optically cheap, but with zero growth and a competitive garment sector, this is not a wonderful business at a fair price; it is an average business at a price that merely looks reasonable. I need years of consistent earnings, visible working capital strength, and a reason to believe growth will resume. Until then, I would rather leave this ₹16 crore microcap on the shelf. The margin of safety in the numbers is not enough to offset the margin of ignorance in the missing disclosures.

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