South West Pinn. (SOUTHWEST)
Fast GrowerFairStock Score: 50/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹220.25 |
| Market Cap | ₹719.15 Cr |
| P/E Ratio | 16.84 |
| ROCE | 11.71% |
| ROE | 22.65% |
| Dividend Yield | 0% |
| Profit Growth | 287.3% |
| Debt/Equity | 0.39 |
| Sales Growth | 53.4% |
| Promoter Holding | 68.85% |
| 52-Week Range | ₹121 — ₹274.5 |
| Sector | Commercial Services & Supplies |
| Book Value | ₹68.23 |
Strengths
- Promoter holding of 68.85% aligns management interests with minority shareholders
- ROE of 22.65% and Piotroski F-Score of 7/9 indicate efficient capital use and improving fundamentals
- Sales growth of 30.79% with PEG of 0.18 suggests valuation is reasonable if the growth is sustainable
- Debt/Equity of 0.52 provides moderate balance sheet cushion for expansion
Concerns
- Zero dividend yield and P/B of 5.67 mean investors pay a heavy premium over book value with no cash return
- ROCE of 11.71% is far below ROE of 22.65%, indicating leverage contributes significantly to reported returns
- Profit growth of 181.32% is exceptional and likely unsustainable; it needs scrutiny for one-time gains
- FairStock Score of 49/100 signals mixed fundamentals despite strong reported growth
AI Analysis
At ₹241.96, market cap ₹544 Cr, I am asked to pay 19 times trailing earnings and 5.67 times book for a business earning 22.65% on equity. Growth has been electric: sales up 30.79% and profit up 181.32%, giving a PEG of 0.18. That looks cheap only if the growth is durable. Graham would remind me that a 181% profit jump is not a sustainable annual rate; it is likely a base effect or a turn in cycle. The latest quarter's ₹63 Cr sales and ₹10 Cr net profit, annualized, roughly justify ₹40 Cr earnings, which tempers the headline P/E. Still, book value is only ₹42.68, so paying ₹241.96 means I am paying a huge premium for management's ability to compound capital. The 68.85% promoter holding is good alignment, but zero dividend means shareholders rely entirely on reinvestment and price appreciation. ROCE of 11.71% versus ROE of 22.65% tells me leverage is doing some of the work; D/E of 0.52 is tolerable but not pristine. The Piotroski score of 7 suggests solid solvency and profitability signals, yet the FairStock score of 49 is mixed. I would not build a position without a bigger margin of safety; I need several more quarters of proof that growth can continue at this pace and that margins are not borrowing from the future.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer