Sportking India (SPORTKING)

FairStock Score: 57/100 — STEADY

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

Key Financials

AI Analysis

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

At ₹135, Sportking India is not the kind of business that makes me leap across the table. Textile manufacturing is a tough, commodity-like trade with little pricing power. But the numbers deserve a second look. The stock trades at just 11.92 times earnings, and with profit growth of nearly 33%, the PEG ratio is only 0.61. That is cheap, provided the growth is real and durable. What bothers me is the source of that growth: sales rose only 5.93%, so the profit jump is coming from margin expansion, not strong underlying demand. The latest quarter shows net profit of ₹25 Cr on sales of ₹646 Cr — a net margin of under 4%. That is thin and vulnerable to input cost swings. Financially, Sportking is respectable: debt-to-equity is 0.48, the Piotroski F-score is 7 out of 9, and book value is ₹74.75 per share against a price of ₹135.29, giving a P/B of 1.81. Return on equity of 13.03% is decent but not exceptional; this is not a wide-moat franchise. Promoter holding of 74.36% is very reassuring — the people running it own most of it. The 52-week range of ₹78 to ₹241 tells me this is a cyclical stock, and today's price is well off the high. At 11.9 times earnings with moderate debt and improving profits, there is a margin of safety, but I must stay cautious. Textile profits can reverse quickly. I would want to see whether this margin expansion is a lasting improvement or just a temporary tailwind.

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