S P Apparels (SPAL)

FairStock Score: 50/100 — MIXED

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As I look at S P Apparels, I ask myself: is this a wonderful business I want to own at the right price? The numbers say it is a decent, average business rather than a fortress. At ₹811.75, the market marks it at ₹1,775 crore, paying 15.64 times earnings and 2.48 times book value. Mr. Market has priced the stock down from ₹1,220 to ₹811.75, but that does not automatically mean value; price must be tested against fundamentals. The balance sheet is safe: debt-equity is 0.45 and the Piotroski F-score of 7/9 tells me there are no obvious financial red flags. Promoter holding of 61.93% keeps management aligned with shareholders, which I respect. But the returns on equity and capital are only 11.20% and 14.25% respectively — hardly a sign of an impregnable moat. Sales grew 6.58% and profit grew 11.50%; profit growth above sales can come from cost control and operating leverage, yet I need to see that continue before deciding it is a durable advantage. The dividend yield of 0.28% means nearly all earnings are retained, so management must earn high returns on those retained rupees. At a PEG of 1.73, the growth is not being handed to me cheaply. Ben Graham taught me to buy with a margin of safety; here the margin is thin. I would put this in my 'too hard' pile unless the price drops further or sales growth visibly accelerates. It's a steady, moderate business, but not a compelling bargain.

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