Thomas Scott (THOMASCOTT)

FairStock Score: 52/100 — MIXED

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

Key Financials

Strengths

• Sales growth of 45.93% and profit growth of 73.33% show strong momentum
• High return ratios: ROE 27.09% and ROCE 20.37%
• Low leverage with debt/equity of 0.21
• Piotroski F-Score of 7/9 indicates healthy fundamentals
• Promoter holding at 52.15% aligns interests

Concerns

• Valuation is rich at P/E 25.88 and P/B 5.97 with zero dividend yield
• Latest quarter net profit margin is only about 7.6% (₹5 Cr on ₹66 Cr sales)
• Garments/apparels is a competitive, low-moat industry with fashion risk
• Price is well off the 52-week high of ₹459.80, reflecting lost market confidence

AI Analysis

Thomas Scott is growing fast — sales up 45.93% and profits up 73.33% — and the balance sheet is disciplined: debt/equity only 0.21, ROCE 20.37%, ROE 27.09%. A Piotroski score of 7 out of 9 adds to the picture of financial health. But I must be honest: garments and apparels is not a business with wide moats. Fashion changes, entry barriers are low, and margins are thin — the latest quarter earned only ₹5 Cr on ₹66 Cr of sales, roughly 7.6%. That’s not pricing power. The market currently values this at ₹454 Cr, P/E 25.88 and P/B 5.97. For a business with zero dividend yield, I need growth to keep compounding to justify that multiple. The 45.93% sales growth and 73.33% profit growth are impressive off a small base, and the PEG of 0.43 suggests the market is not fully paying for that growth. But a small base can exaggerate. The share price has fallen from its 52-week high of ₹459.80 to ₹267.88, so Mr. Market’s mood has cooled. Is the business worth more? Maybe. But I need a margin of safety, and at 25.88 times earnings, with no moat to protect margins, I don’t see one yet. Promoter holding at 52.15% is positive, but I would want to know if shares are pledged and how working capital needs are funded as it scales. This is a fast grower, not a stalwart. If growth slows, the multiple will compress brutally. I'd wait for a lower price or more proof of durability.

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