Sumeet Industrie (SUMEETINDS)
TurnaroundFairStock Score: 8/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹14.77 |
| Market Cap | ₹1,026.15 Cr |
| P/E Ratio | 47.65 |
| ROCE | -2.14% |
| ROE | -86.79% |
| Dividend Yield | 0% |
| Profit Growth | -85.69% |
| Debt/Equity | 0.75 |
| Sales Growth | 9.17% |
| Promoter Holding | 89.83% |
| 52-Week Range | ₹9.15 — ₹37.65 |
| Sector | Textiles & Apparels |
| Book Value | ₹75.77 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
Let me start with what deserves credit: Sumeet Industrie's shares trade at ₹30.03 against a book value of ₹75.77, giving a price-to-book of only 0.40. That looks like the kind of asset bargain Graham would inspect. But a low P/B is only meaningful if the assets can earn a decent return. Here ROE is -86.79% and ROCE is -2.14%. This business is destroying capital, not compounding it. A textile player with these numbers has little pricing power and no economic moat. The latest quarter offers some hope: sales of ₹267 Cr and a net profit of ₹9 Cr. But that is a net margin of barely 3.4%, and the reported profit growth of 1000% is from a low base; it tells me nothing about durable growth. Sales growth of 6% is pedestrian. A P/E of 48.32 is rich for a commodity-like business with negative historical returns. The PEG of 0.10 is a statistical fantasy because it uses that meaningless profit growth. Debt/equity of 0.48 is moderate, which is a positive, but with negative ROCE even moderate debt feels heavy. Promoter holding of 89.83% is high; it aligns interests, but it also leaves a thin float and exit risk. I respect the Piotroski F-score of 6/9 — it hints at improving fundamentals — but it is only one screen, not a conclusion. The FairStock Score of 21/100 terms this risky, and I agree. There is no dividend, so the only return is price appreciation. I need a margin of safety in earnings power, not just in book value. Until this company shows sustained profitability and better returns on capital, I prefer to wait. The price is cheap for a reason, and in investing, cheap can get cheaper.
The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer