South West Pinnacle Exploration Ltd (SOUTHWEST) — share price & stock analysis

Market cap

₹651 Cr

P/E

19.7×

ROE

17.7%

vs own 10-yr valuation

41st pctile

Book value / share

₹68.2

EPS (TTM)

₹11.1

10-yr median P/E

24.6×

Revenue (FY26)

₹243 Cr

Profit after tax (FY26)

₹33 Cr

Weinstein stage

Stage 2 (36 weeks)

Data as of

1 July 2026

4 of the 6 things we track are currently moving the right way — nearly everything is pulling in the same direction.

Where the levels actually stand: ROCE 20% — a high-quality engine; debt moderate (0.39× equity); margins mid-band. Momentum says which way things are moving; these say where they are.

Read this number for what it is: it measures the DIRECTION of change, not the quality of the business. A mediocre business getting better scores high here; a great one having a soft quarter scores low. Profit, sales and margins count double, and a quarter of the score comes from our earnings-recovery lens (is the profit cycle turning up off its trough?).

Most of this rally is re-rating, not earnings

Since May 2018, the stock is up 454% while earnings per share grew 79%. The difference is re-rating — investors paying more for the same rupee of profit.pricettm_eps

That works until it doesn’t: from here, earnings have to do the lifting, because the multiple has already done its part.

Today’s P/E of 19.7× is the middle of its own range against its own 10-year history (41st percentile) — neither a bargain nor a stretch, by its own standards.pe_ratio

Price is the weekly close (₹). EPS is trailing-twelve-month profit per share, anchored on Screener's own snapshots; between snapshots it is filled from price ÷ P/E (an exact identity), and any fill straying more than 18% from the neighbouring snapshots is dropped rather than shown. The lower panel is the P/E — what the market pays per rupee of profit; the dotted line is its long-run median (24.6×).

Stage 2: the trend is up, and has been for 36 weeks

Price trends have a life cycle: they base (1), advance (2), top out (3) and decline (4). This chart is in Stage 2: advancing — 36 weeks so far, confirmed.stage

The price sits above its rising 200-day average (₹204 today) — trends like this persist more often than they reverse, which is why the system rides them instead of guessing the top.dma_200

Beating NIFTY 500 for 41 weeks — relative strength is the market’s live opinion, and right now it is on this stock’s side.rs_mansfield

What would end it: two Friday closes in a row below the 200-day line. That is the house exit rule — mechanical, no debates.dma_200

Profits are at an all-time high

Over 12 years, sales went from ₹52.0 Cr to ₹243 Cr (about 14% a year), and profit from ₹3.0 Cr to ₹33.0 Cr.revenuenet_profit

Margins gave up 3 points along the way — growth bought at a price.operating_profit

Sales have gone quiet — growth has stalled

Mar 26 sales were ₹78.0 Cr, up 5% on the same quarter last year.revenue

That makes 10 quarters of growth in a row — this is a trend, not a blip.revenue

Margins are widening — 21% → 26% in a year

Of every ₹100 of sales, the company keeps ₹26.2 as operating profit (a year ago it kept ₹20.8).opm_pct

Zoom out and this is the page's quiet hero: annual operating margin bottomed at 16.1% in FY23 and has been rebuilt to 23.9% — that recovery, not sales alone, is what powers the profit growth elsewhere on this page.operating_profit

The gross margin moved the same way (67% → 83%), so this is about input costs and pricing power — the raw-material equation improved.gpm_pctopm_pct

Profit jumped 30% — mostly from keeping more of each sale

Mar 26 profit after tax was ₹13.0 Cr, up 30% year on year.net_profit

Cash has tracked profit for years — but slipped last year

Over the last 5 profitable years, the business reported ₹77.0 Cr of profit and collected ₹72.0 Cr of operating cash — about 94% conversion.operating_cash_flownet_profit

The wrinkle is the latest year: FY26 collected ₹12.0 Cr against ₹33.0 Cr of reported profit — about 36%. One year isn’t a trend, but it is the line to watch.operating_cash_flownet_profit

The gap sits in receivables: customers now take 175 days to pay, up from 155. Profit booked, cash pending.debtor_days

The cash cycle is stretching — more money stuck in the pipeline

One rupee now takes about 452 days to go out the door as materials and come back as collected cash — up from 379 days the year before.cash_conversion_cycle

The biggest mover: inventory sitting longer in the warehouse (376 → 508 days).inventory_days

The asset base keeps compounding — this company builds

The productive asset base has gone from ₹36.0 Cr (FY14) to ₹115 Cr.fixed_assetscwip

The build is bigger than the cash engine: investing outflows (₹80.0 Cr) exceeded operating cash (₹58.0 Cr) over the last 3 years — the difference comes from debt or shareholders.investing_cash_flowoperating_cash_flow

Debt is present but comfortable

For every ₹100 shareholders have put in (and left in), the company has borrowed ₹39 — total borrowings have grown from ₹48.0 Cr to ₹80.0 Cr over the window.borrowings

Every ₹100 kept in the business now earns ₹20 — and the number is rising

Return on capital employed is 20.0% (a year ago: 13.0%). This is the single best test of business quality: what the company earns on the money it keeps.roce_pct

Rising returns on capital while growing is the rarest combination in investing — it means the new projects earn more than the old ones.roce_pct

Promoter holding dropped in one step — an event, not a slow exit

Promoters hold 68.8% (down 4.8 points over 8 quarters). Foreign funds own 0.8%, domestic funds null%.promoters_pctfiis_pctdiis_pct

The promoter move came in a single step (Mar 25) — promoters rarely buy on-market, so a jump like this is almost always an allotment, infusion or restructuring: a capital event, not a slow accumulation of conviction. Worth knowing which, before reading it as a signal.promoters_pct

Meanwhile domestic funds have been the sellers — from 13.1% to 0.0% over the window. Someone on the other side of the table disagrees; both sides count.diis_pct

Strong on the data — worth the deeper look if the story keeps its promises

The numbers lean positive, and the price already assumes the good news continues.

Best thing in the data: returns on capital rising (13.0% → 20.0%).roce_pct

Biggest worry: free cash flow falling (₹23.0 Cr → ₹−26.0 Cr).operating_cash_flow

Machine-written research from Screener data — every number traces to its source column. Sector Alpha is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell. Not investment advice.

Straight answers from the data