Texmo Pipes (TEXMOPIPES)

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

Key Financials

Strengths

• Trades at a 32% discount to book value: P/B of 0.68 against book value of ₹69.66.
• Low P/E of 7.15 provides a cheap entry on trailing earnings.
• Balance sheet is conservative with debt/equity of 0.29 and a Piotroski F-Score of 7/9.
• Promoter holding of 44.23% aligns management with minority shareholders.

Concerns

• Near-zero growth: sales growth of 0.15% and profit growth of 0.80% suggest a stagnant business.
• Low capital efficiency: ROE of 7.81% and ROCE of 8.92% indicate weak value creation.
• Zero dividend yield means no income while waiting for the price-to-book gap to close.
• PEG of 15.05 implies the low P/E is not cheap on a growth-adjusted basis.

AI Analysis

At ₹47.46, I am being offered ₹69.66 of book value for ₹47.46. That is a 32% discount, and the P/E is only 7.15. On a pure Graham basis, this passes a simple statistical screen. But Graham also taught me to look behind the numbers, and here the numbers whisper mediocrity. Return on equity is 7.81% and return on capital employed is 8.92%—these are not returns that create significant shareholder wealth over time. Sales growth is 0.15% and profit growth is 0.80%; the business is barely moving. The latest quarter, with sales of ₹110 Cr and net profit of ₹5 Cr, confirms a flat, low-margin enterprise. There is no dividend, so I cannot earn while I wait; my return must come from a re-rating or a better business. On the positive side, debt is low—debt/equity of 0.29—and the Piotroski F-Score of 7/9 indicates the financial position is not deteriorating. Promoter holding of 44.23% is respectable, though not absolute. This is not a wonderful business at a fair price; it is a fair business at a statistically cheap price. The PEG ratio of 15.05 confirms there is no growth to justify the multiple; the low P/E simply reflects stagnant economics. If I were to buy, I would treat it as an asset play, not a compounding machine. I need a catalyst: better capital allocation, improvement in ROCE, or a sustained rise in sales growth. Until then, the margin of safety protects the downside, but it does not guarantee upside.

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