Cantabil Retail (CANTABIL)

FairStock Score: 35/100 — MIXED

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

Key Financials

Strengths

• ROE of 26.17% indicates efficient capital deployment and strong shareholder returns
• Profit growth of 31.11% outpacing sales growth of 18.80% shows improving margins/operating leverage
• Piotroski F-Score of 7/9 signals healthy fundamentals and low financial distress risk
• Promoter holding at 74.21% aligns management interests with minority shareholders

Concerns

• Debt-to-equity of 1.26 is relatively high for an apparel retailer, adding financial risk
• P/E of 25.03 and P/B of 6.08 leave little room for error if growth decelerates
• Dividend yield of only 0.38% means investors rely almost entirely on capital gains
• 52-week range of ₹208.50-₹321.50 shows recent price volatility; current price is below midpoint, reflecting some pessimism

AI Analysis

When I look at Cantabil Retail, I first ask: what kind of business am I buying? It's a branded garments player in a fiercely competitive Indian apparel market. The numbers tell me this is a well-managed company but not a classic wide-moat franchise. Return on equity of 26.17% is excellent, and a Piotroski F-Score of 7 out of 9 suggests the balance sheet and operations are fundamentally sound. Profit growth of 31.11% is outpacing sales growth of 18.80%, which indicates operating leverage or better margins. That is encouraging. But I must be honest about valuation and leverage. At ₹245, the stock trades at 25 times earnings and 6.08 times book value. That is not a bargain for a garment retailer without pricing power. The debt-to-equity ratio of 1.26 makes me cautious; I prefer businesses that can grow without leaning heavily on borrowed money. The dividend yield is negligible at 0.38%, so the return to shareholders depends entirely on future growth and stock price appreciation. The latest quarter shows sales of ₹264 crore and net profit of ₹45 crore, so profitability is real. A PEG ratio of 1.00 suggests growth is fairly priced, but only if the 31% profit growth is sustainable. Promoter holding of 74.21% is a positive sign—owners have skin in the game. Would I buy it today? Not at this price without a margin of safety. I would need a lower entry point or evidence that the growth trajectory can continue for many years. It's a good company, but a good company is not always a good investment. I'll put it on my watchlist and let Mr. Market offer me a better price.

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