Siyaram Silk (SIYSIL)

FairStock Score: 57/100 — STEADY

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

Key Financials

Strengths

• ROE of 17.12% and ROCE of 20.42% show solid capital efficiency
• Low debt/equity of 0.31 provides financial stability
• Promoter holding of 67.44% aligns interests with minority shareholders
• Dividend yield of 2.26% offers some income while waiting
• Sales growth of 9.20% shows top-line resilience

Concerns

• Profit growth is negative at -8.65%, and Piotroski F-Score of 4/9 indicates weakening financials
• P/B of 2.18 is not cheap relative to book value of ₹270.05
• Stock is significantly below its 52-week high of ₹848.80, suggesting cyclical or earnings pressure
• Latest quarter net profit of ₹42 Cr on sales of ₹623 Cr reflects thin margins

AI Analysis

When I look at Siyaram Silk, I first ask not what the next quarter will bring, but whether the business earns a good return on capital and can be bought at a sensible price. With ROE at 17.12% and ROCE at 20.42%, the company clears my basic hurdle. It has been profitable, and the balance sheet is conservative: debt-equity is only 0.31. That gives me comfort in a cyclical and competitive textile industry. Promoters hold 67.44%, so their interests are aligned with mine. A 2.26% dividend yield while I wait is a small plus. But I cannot ignore the recent numbers. Profit growth is -8.65%, and the Piotroski F-Score of 4/9 hints at deteriorating financial health. Sales grew 9.20%, yet that failed to reach the bottom line. That tells me margins or other items are under pressure. Graham would remind me that past earnings are not future guarantees; I must see evidence of recovery in margins and cash flow. At ₹588.60, the P/E is 11.71 and P/B is 2.18. The price is 31% below its 52-week high of ₹848.80. Is it a bargain? The valuation is not excessive, but the PEG of 1.27 suggests growth at a reasonable price, not a deep Graham discount. I would not call this a wonderful business with an enduring moat. Textile manufacturing in India is intensely competitive and subject to fashion cycles and raw-material costs. Siyaram looks like a decent, conservatively financed enterprise that has stumbled recently. I would wait for proof that profit growth has resumed, and I would want a wider margin of safety before committing new capital. It is a hold-and-monitor situation, not a clear bargain.

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