Ruby Mills (RUBYMILLS)

FairStock Score: 48/100 — MIXED

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

Key Financials

Strengths

• P/E of 12.39 and P/B of 1.20 are modest on reported earnings and book value of ₹193.22.
• Sales growth of 23.02% shows top-line momentum in a difficult textile environment.
• Promoter holding of 74.90% aligns owner interest with minority shareholders.
• Debt-to-equity of 0.61 is manageable and not alarming from a balance-sheet perspective.

Concerns

• Profit growth is sharply negative at -35.65% despite 23% sales growth, indicating severe margin pressure.
• ROE of 8% and ROCE of 5.54% are weak and suggest capital is not being deployed efficiently.
• Piotroski F-Score of 4/9 signals poor fundamental health and possible financial stress.
• The 52-week range of ₹169.02 to ₹424.90 reflects high volatility and an uncertain earnings cycle.

AI Analysis

At ₹232, Ruby Mills trades at 12.4 times earnings and 1.2 times book. On the surface, that sounds reasonable. But I always ask: what am I paying for, and what is the quality of the earnings? This is not a franchise with pricing power. ROCE is only 5.54%, below what a boring savings instrument can give, and ROE is just 8%. The latest quarter shows net profit of ₹9 Cr on sales of ₹80 Cr, a margin around 11%, but yearly profit has fallen 35.65% even as sales grew 23%. That tells me sales are not converting into profit, and margins are under pressure. Textile is a capital-intensive, cyclical business. The stock has traveled from ₹424 to below ₹170, and now sits at ₹232; that range itself warns me about volatility. Promoter holding of 74.9% is good, but it also means low floating supply and can magnify moves. The Piotroski score of 4/9 is weak; debt at 0.61 times equity is manageable, but not pristine. A dividend yield under 1% gives no buffer if earnings stay weak. The PEG ratio of 0.54 is misleading if earnings are falling; using last year's sales growth as a proxy for future growth would be dangerous. I would not call this a great compounder. It may be a cyclical whose earnings have slumped, or an asset play if the assets are worth more than the market price, but I cannot verify that from these numbers. As a Graham-style investor, I need a margin of safety. At 1.2 times book and weak returns, I find limited margin of safety. I would dig much deeper into cash flows, order book, and asset values before committing any capital.

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