Raasi Refractor (502271)

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

Key Financials

Strengths

• Sales grew 732.27%, indicating a significant order-driven surge or business revival.
• Piotroski F-Score of 7/9 suggests improving financial health across profitability, leverage, and efficiency metrics.
• Positive ROCE of 13.63% shows the capital employed in operations is generating a return, unlike the negative ROE at shareholder level.
• At ₹32.95, the stock is at its 52-week high, and the low P/E of 2.04 could offer a margin of safety if earnings stabilize.
• Latest quarter sales of ₹18 Cr against a ₹16 Cr market cap implies a high turnover base if sustained.

Concerns

• ROE is -34.29% and the latest quarter net profit is -₹2 Cr, meaning shareholder value is being eroded.
• Profit growth of 8.77% lags revenue growth of 732.27%, suggesting weak margins and possibly poor pricing power.
• No dividend, no book value, no promoter holding, and no debt/equity data make a Graham-style balance-sheet check impossible.
• P/E and PEG are unreliable when the current quarter is a loss and earnings are volatile.

AI Analysis

At first glance, a P/E of 2.04 and a PEG of 0.01 scream opportunity, but as Buffett would say, a shallow moat can't hide a leaky boat. Raasi Refractor is a ₹16 Cr market cap industrial business trading at ₹32.95, near its 52-week high of ₹32.95. The 732.27% revenue jump is startling, yet profit growth is only 8.77%, and the latest quarter delivered ₹18 Cr sales with a ₹2 Cr net loss. That tells me revenue is not translating into shareholder earnings. ROE is negative at -34.29%, while ROCE is positive at 13.63%; operations generate some return on capital employed, but equity holders are being hurt. The Piotroski F-Score of 7/9 is encouraging and suggests improvements, but it is only a snapshot. Since book value, debt/equity, and promoter holding are N/A, I cannot apply Graham's balance-sheet discipline. A stock selling at 2 times earnings is only cheap if earnings are real and sustainable. Here, the latest quarter loss makes me doubt the quality of those earnings. No dividend means patience earns no cash. The top-line surge looks like a turnaround from a low base, not a durable moat. Small industrial products businesses often lack pricing power; this one seems to prove it. If the company turns consistently profitable, the low P/E and PEG might make it a Graham special, but I need several more quarters of profits, better margins, and data on debt and ownership before I can call it a wonderful business. Value is not in the price chart; it is in the cash flows that survive scrutiny.

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