Borana Weaves (BORANA)

FairStock Score: 60/100 — STEADY

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

Key Financials

Strengths

• ROCE of 41.21% with debt/equity of only 0.18 shows exceptional capital efficiency and a conservative balance sheet.
• Sales growth of 42.04% and profit growth of 63.27%, with latest quarter net profit of ₹19 Cr on sales of ₹111 Cr, show strong momentum.
• PEG ratio of 0.34 suggests the growth is not fully reflected in the P/E of 17.85.
• Promoter holding of 65.24% aligns promoter interests with minority shareholders.
• Piotroski F-score of 7/9 indicates solid overall financial health.

Concerns

• Zero dividend yield means shareholder returns depend entirely on future capital appreciation and reinvestment.
• P/B of 3.82 and price near the upper end of the 52-week range leave limited margin of safety.
• ROE is not available, so I cannot verify whether the high ROCE translates into strong equityholder returns.
• Textile products can be competitive and cyclical, and no clear brand moat is visible in the data.

AI Analysis

When I look at Borana Weaves, I try to forget the chart and start with the business. The market cap is ₹1,041 Cr, and at a P/E of 17.85 the price is not silly. What interests me is the growth: sales are up 42.04%, profits are up 63.27%, and the latest quarter delivered ₹111 Cr sales and ₹19 Cr net profit. With a PEG of 0.34, the market seems to be paying modestly for that growth. That is attractive, but I have learned to ask whether the growth is built on sand or stone. The stone is the balance sheet and capital efficiency. Debt/equity is only 0.18, so this is not a leveraged promoter dream. ROCE of 41.21% is exceptional; any business earning that kind of return on capital probably has a niche or a structural advantage. The Piotroski F-score of 7/9 gives me confidence in the financial health. Promoter holding at 65.24% also aligns the captain with the passengers. However, I must not let good numbers blind me to price or risk. There is zero dividend yield, so the only return is appreciation; management must keep reinvesting at high returns. A P/B of 3.82 and the price near the upper end of its 52-week range of ₹211 to ₹420 means I am paying a significant premium to book value. The FairStock score of 64/100 calls it 'steady,' not a bargain. Also, ROE is not available, so I cannot confirm that this excellent operating return is fully reaching shareholders. Textiles are competitive and can be cyclical, and I do not see a wide-moat brand in the data. If the growth continues, this is a fine compounder. But I would want a better margin of safety before treating it as a core holding. In Graham's words, price is what you pay; value is what you get. Here, the value exists, but the price already celebrates it.

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