Purple United (PURPLEUTED)

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

Key Financials

Strengths

• Sales growth of 99.11% and profit growth of 53.50% show strong business momentum
• ROCE of 26.21% indicates efficient capital deployment in a capital-intensive industry
• PEG of 0.31 suggests the market price is not fully reflecting the growth rate
• Promoter holding of 63.82% aligns management interests with minority shareholders
• Piotroski F-Score of 7/9 points to solid overall fundamental health

Concerns

• Small scale: latest quarter sales are only ₹61 Cr and net profit ₹5 Cr, offering limited durability
• No dividend and missing data on book value, debt/equity, and ROE prevent a full balance-sheet assessment
• Stock is significantly below its 52-week high of ₹496, trading at ₹285, which may indicate de-rating or underlying problems
• Apparel is competitive and fashion-driven; there is no clear evidence of a durable moat

AI Analysis

Garments and apparels is a brutally competitive business, so I normally keep walking. But Purple United forces me to pause. Revenue grew 99.11% and profit grew 53.50%—that kind of compounding is rare. At ₹285.10, the market cap is ₹292 Cr, so the market is not pricing it as a star. The P/E is 23.84; with profit growth over 50%, the PEG is just 0.31. If even half of that growth persists, the entry price is sensible. ROCE of 26.21% shows management is earning a solid return on capital, and promoter holding at 63.82% means owners eat their own cooking. The Piotroski score of 7/9 reinforces my confidence in profitability and operating health, though book value, debt/equity, and ROE are unavailable. Latest quarter sales of ₹61 Cr and net profit of ₹5 Cr would annualize to around ₹20 Cr, which roughly matches the earnings implied by the P/E—but one quarter is a snapshot, not a trend. No dividend is fine for a grower; I want retained earnings to create value. The 52-week range of ₹244.45 to ₹496.00 tells me the stock has de-rated sharply, perhaps offering opportunity, perhaps reflecting competition or execution risk. I cannot call it a wide-moat stalwart; apparel is fickle and fashion-driven. I would need several quarters of continued 50%-plus profit growth, stable margins, and clean debt levels before committing serious capital. But for a small-cap with a low PEG, high ROCE, and high insider ownership, Purple United belongs on a watchlist. Valuation is reasonable only if growth persists; if growth stalls, the market will re-rate harshly.

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