Vishal Fabrics (VISHAL)
Slow GrowerScore breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹22 |
| Market Cap | ₹434.93 Cr |
| P/E Ratio | 14.77 |
| ROCE | 10.84% |
| ROE | 6.4% |
| Dividend Yield | 0% |
| Profit Growth | -32.6% |
| Debt/Equity | 0.35 |
| Sales Growth | -4.6% |
| Promoter Holding | 55.05% |
| 52-Week Range | ₹14.66 — ₹24.45 |
| Sector | Textiles & Apparels |
| Book Value | ₹26.12 |
Strengths
- Trades close to book value at P/B of 1.14, limiting downside
- Debt-to-equity of 0.41 indicates a conservative balance sheet
- Piotroski F-Score of 7/9 signals acceptable financial health
- Promoter holding of 55.05% aligns management with minority shareholders
Concerns
- Low ROE of 6.40% and ROCE of 10.84% imply weak capital efficiency
- P/E of 19.00 with near-zero profit growth (1.30%) makes valuation stretched
- No dividend yield – shareholders get no income while waiting for growth
- Highly competitive garments industry with thin profit margins (₹8 Cr on ₹424 Cr quarterly sales)
AI Analysis
When I look at Vishal Fabrics, I see a business that is cheap on the surface but not necessarily cheap on substance. The stock trades at ₹22.48, barely 1.14 times its book value of ₹19.73. That sounds reasonable, but as Graham warned, price is what you pay, value is what you get. The company earns a return on equity of only 6.40%, well below what I’d demand from a quality compounding machine. Its ROCE of 10.84% is modest, and with profit growth of just 1.30% and sales growth of 4.96%, this is a slow treadmill, not an escalator. The P/E of 19.00 looks rich when the PEG ratio is 6.07 – the market is paying up for growth that simply is not there. There is no dividend yield to compensate patient shareholders, which is disappointing for a low-growth business. On the positive side, the company carries a manageable debt-to-equity of 0.41 and a Piotroski F-Score of 7/9, suggesting the balance sheet is not deteriorating. Promoters hold 55.05%, so their interests are aligned with mine. But the garments and apparels industry is fiercely competitive, with little pricing power and thin economic moats. The latest quarter shows sales of ₹424 Cr and net profit of just ₹8 Cr – a pathetically thin margin. At 25/100 on the FairStock score, this is clearly a risky proposition. I would need a much larger margin of safety, or a clear catalyst for better returns, before parking my money here.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer