Swaraj Suiting (SWARAJ)

FairStock Score: 60/100 — STEADY

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

Key Financials

Strengths

• Exceptional growth: sales up 92.77% and profit up 120.48%, with latest quarter sales of ₹165 Cr and net profit of ₹11 Cr.
• Valuation appears reasonable at P/E of 14.08 and PEG of 0.13 if growth sustains.
• ROCE of 18.08% indicates decent capital efficiency.
• Piotroski F-Score of 7/9 suggests sound fundamental health.
• Promoter holding of 64.95% aligns owners with minority shareholders.

Concerns

• Book value, ROE, and debt-to-equity are not available, leaving the balance sheet and leverage unclear.
• Zero dividend yield means returns depend entirely on future capital appreciation.
• Textile industry is cyclical and competitive, with no clear durable moat visible from the data.
• High growth may be from a low base; sustainability is unproven, and the stock's 52-week range shows significant volatility.

AI Analysis

At first glance, Swaraj Suiting looks like the kind of growth story that makes value investors pause. A P/E of 14.08 with sales up 92.77% and profit up 120.48% is rare; the PEG of 0.13 screams cheap if those numbers are sustainable. But I have to remind myself that in textiles, today's compounder can be tomorrow's cyclical laggard. ROCE at 18.08% is respectable, and a Piotroski score of 7 out of 9 suggests the recent earnings improvement is backed by healthy fundamentals. Promoter holding of 64.95% is also reassuring, as the owners' interests are aligned with public shareholders. Yet I cannot fully embrace a business whose book value, return on equity, and debt-to-equity are not available. Without a clear look at the balance sheet and leverage, I am flying partially blind. The dividend yield is zero, so any return must come from price appreciation and reinvestment. The latest quarter shows sales of ₹165 crore and net profit of ₹11 crore, a clue that growth is continuing, but textile margins can be thin and demand can shift quickly. The 52-week range of ₹158.50 to ₹399.95 reminds me that volatility is the price of admission. This is not a wonderful business with a durable moat in my eyes; it is a fast-growing enterprise in a competitive, cyclical industry. At ₹290.30 with a market cap of ₹668 crore, the market is pricing in continued high growth. If the company executes and maintains its growth, the current valuation may prove reasonable. If growth reverts to normal, the cushion looks smaller. I would watch debt levels and cash conversion carefully before committing new capital.

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