Dollar Industrie (DOLLAR)

FairStock Score: 26/100 — RISKY

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

Key Financials

Strengths

• Low leverage with Debt/Equity of 0.37 provides financial cushion
• Promoter holding of 72.21% aligns interests with minority shareholders
• Decent capital efficiency: ROE 12.93% and ROCE 12.63%
• Modest dividend yield of 1.02% offers some shareholder return

Concerns

• Profit growth is negative at -1.23% with sales growth of only 2.76%
• Piotroski F-Score of 4/9 and FairStock Score of 25/100 indicate weak financial health
• PEG of 5.86 suggests the valuation is not justified by growth
• Thin net margin of roughly 4.9% in a competitive garments industry

AI Analysis

At ₹330, Dollar Industrie is priced at 16.18 times earnings and 2.31 times book value. That is not an unreasonable multiple, but I require growth or a margin of safety to pay such a price. The underlying figures do not excite me. Sales grew only 2.76% and profit actually declined 1.23%. A PEG of 5.86 tells me the valuation has run far ahead of genuine earnings growth. In a low-margin garments business, latest quarterly sales of ₹388 Cr produced just ₹19 Cr of net profit—roughly a 4.9% net margin. That is thin. On the positive side, the balance sheet is respectable: debt/equity is 0.37, and the company earns 12.93% ROE and 12.63% ROCE. Promoters hold 72.21%, which aligns ownership with minority shareholders. The 1.02% dividend yield is modest but signals some willingness to return cash. Yet the Piotroski F-Score of 4/9 flags deteriorating fundamentals, and FairStock's 25/100 risk score matches my own caution. I don't see a wide moat in apparel; competition is intense and switching costs are low. The 52-week range of ₹220.50 to ₹396.00 tells me the market itself is uncertain. At the current price, I'm being asked to pay a full multiple for a slow grower with negative profit momentum. Graham would demand a margin of safety. I would rather wait for either a lower price—perhaps closer to the lower end of that range—or evidence that sales and profit growth have inflected upward. Until then, this is a 'watch and wait' situation, not a buy. I need durable earnings, not just a low debt number, to commit capital.

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