Bannari Amm Spg. (BASML)
Asset PlayScore breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹24.74 |
| Market Cap | ₹197.73 Cr |
| P/E Ratio | 12.89 |
| ROCE | 4.49% |
| ROE | 3.79% |
| Dividend Yield | 1.01% |
| Profit Growth | 171.4% |
| Debt/Equity | 0.84 |
| Sales Growth | -0.4% |
| Promoter Holding | 49.55% |
| 52-Week Range | ₹17.05 — ₹31.9 |
| Sector | Textiles & Apparels |
| Book Value | ₹59.26 |
Strengths
- Trades at a 55% discount to book value (P/B 0.45 against book value ₹51.71).
- P/E of 11.02 and PEG of 0.12 suggest low valuation relative to reported earnings.
- Piotroski F-Score of 6/9 indicates some improvement in financial health.
- Promoter holding of 49.55% aligns management with minority shareholders.
Concerns
- ROE of 3.79% and ROCE of 4.49% reflect weak returns on capital.
- Sales declined 4.32%, and latest quarterly net margin is roughly 1% (₹2 crore profit on ₹204 crore sales).
- Debt/equity of 0.96 is high for a low-return business.
- No dividend means no income cushion while waiting for a turnaround.
AI Analysis
At first glance, Bannari Amm Spg looks like the sort of stock Benjamin Graham would inspect: priced at ₹23.10 against book value of ₹51.71, a P/B of just 0.45. That is a 55% discount to stated net worth. But I’ve seen many cheap stocks stay cheap when the business cannot turn assets into earnings. Here, ROE is only 3.79% and ROCE is 4.49%. The company earns very little on its capital, and with debt/equity of 0.96, that capital base is supported by significant borrowings. Sales declined 4.32%, so the top line is shrinking. The 90.10% profit growth is eye-catching, but the latest quarter shows net profit of only ₹2 crore on revenue of ₹204 crore—a thin 1% margin. There is no dividend, so shareholders are dependent on asset realisation or an industry upswing. The Piotroski F-Score of 6/9 hints at some improvement in financials, and promoter holding of 49.55% provides alignment. Still, this is not a wonderful franchise; it is a cyclical textile asset play trading below book because the market doubts the earning power of those assets. As Graham would put it, you get asset value, but you also get a business that has yet to prove it can earn a proper return on that value. I would consider it only with a large margin of safety, close supervision, and a clear understanding of what the book value would be worth in distress. Surface cheapness is not enough; I need evidence that management can convert assets into cash flows.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer