Texmaco Infrast. (TEXINFRA)

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

Key Financials

Strengths

• Trades at a significant discount to book value: P/B 0.68 versus book value of ₹141.31.
• Near debt-free balance sheet with debt/equity of 0.02.
• High promoter holding of 65.80% aligns management interests with minority shareholders.
• Piotroski F-Score of 6/9 suggests some improvement in financial health.
• 108.91% profit growth and PEG of 0.96 hint at an earnings rebound, albeit off a low base.

Concerns

• Extremely low profitability: ROE of 0.54% and ROCE of 0.53%.
• P/E of 104.75 is expensive, with market cap of ₹1,200 Cr versus very small quarterly sales of ₹4 Cr and profit of ₹1 Cr.
• Sales declined 4.02%, and latest quarter profit is too tiny to judge sustainability.
• FairStock Score of 16/100 (RISKY) and negligible dividend yield of 0.16% provide little support.

AI Analysis

At first glance, Texmaco Infrast looks like a Graham asset study. At ₹96.71, it trades well below book value of ₹141.31, and the debt-to-equity ratio is just 0.02. Promoter holding of 65.80% gives me comfort that management has skin in the game. But the economics of the business trouble me. Return on equity is 0.54% and return on capital employed is 0.53% — for every ₹100 of capital, I get roughly 54 paise of profit. That tells me there is no moat, no pricing power, and no efficient use of assets. Sales actually fell 4.02%, and the latest quarter reported only ₹4 crore in sales with ₹1 crore profit. The P/E of 104.75 is not a bargain; it’s a warning. The 108.91% profit growth and PEG of 0.96 look exciting, but such growth from a tiny base can be misleading. The Piotroski score of 6/9 is modest, and the overall FairStock Score of 16/100 labels this risky. I respect the absence of debt and the high promoter holding, but a cheap price-to-book can stay cheap if capital is stuck earning 0.5% returns. They have assets, but are they worth the book value? That is the real question. I would not classify this as a quality compounder. It is a potential asset play with a strong balance sheet and weak operations. I want to see ROE climb toward a real cost of capital, sales turn positive, and profits repeat before I act. Buffett’s rule: it’s far better to buy a wonderful business at a fair price than a fair business at a wonderful price. By the numbers, this is currently the latter.

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