Spunweb Nonwoven (SPUNWEB)

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

Key Financials

Strengths

• Sales growth of 33.20% with ROCE of 22.25% shows strong capital efficiency and expansion
• P/E of 14.32 is reasonable for a fast-growing business; PEG of 0.12 suggests market underestimates near-term earnings
• Piotroski F-Score of 7/9 indicates improving financial health across profitability, leverage, and efficiency
• Latest quarter sales of ₹137 Cr and net profit of ₹11 Cr imply ~8% operating margin with meaningful earnings generation
• Promoter holding of 65.27% aligns management interests with minority shareholders

Concerns

• Profit growth of 212.21% may be from a low base and is unlikely to be repeated; PEG can mislead
• No ROE, book value, or debt-to-equity data hides the true balance sheet strength and leverage risk
• Zero dividend yield means investors depend entirely on capital appreciation and reinvestment
• Nonwoven textiles is a competitive, commoditized industry with no obvious moat visible from these numbers

AI Analysis

Looking at Spunweb, the first thing that strikes me is the arithmetic: at ₹121 with a market cap of ₹259 Cr, I'm paying 14.32 times earnings. That's not demanding for a business growing sales at 33.20%. ROCE of 22.25% tells me the company is putting capital to work efficiently—that's the kind of number I like to see before I trust a growth story. Latest quarter sales of ₹137 Cr and net profit of ₹11 Cr imply roughly an 8% margin, respectable but not spectacular. Yet I must be careful. Profit growth of 212.21% looks magnificent, but such numbers in a single year can be a trap—often it's a recovery from a poor base, not compounding. PEG of 0.12 assumes that profit growth continues; I've learned not to pay for yesterday's growth at today's price. Also, in a commodity-like nonwoven textile business, I need a durable cost or brand edge. I don't see a clear moat from the figures. The high promoter holding of 65.27% is good, because owners eat their own cooking, but zero dividend means I must rely on reinvestment and eventual earnings. Graham would demand a margin of safety. At 14.32 times earnings, with strong sales growth, there is some margin. The Piotroski score of 7 out of 9 suggests recent fundamentals are improving across profitability, leverage, and efficiency—that gives me confidence. But I'm bothered by missing data: no book value, no debt-to-equity, no ROE. I cannot fully understand the balance sheet. In Mr. Market's casino, that's where surprises hide. I'd call this a fast grower worth watching, but I'd only invest with eyes open, knowing that a 212% profit jump is the exception, not the rule. If the next quarter shows continued high margins, I can become more enthusiastic.

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