Raja Bahadur Int (503127)

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

Key Financials

Strengths

• Piotroski F-Score of 7/9 indicates solid current financial strength and improving fundamentals.
• ROE of 15.07% is respectable for a small, capital-intensive business.
• Reported profit growth of 242.86% and PEG of 0.60 show strong near-term momentum.
• Sales growth of 9.63% and a profitable latest quarter (₹1 Cr net profit on ₹7 Cr sales) confirm the business is operating.
• Book value of ₹405.83 provides some accounting cushion, though the market price is far above it.

Concerns

• Valuation is very rich: P/E of 75.62 and P/B of 10.87 leave almost no margin of safety.
• Profit growth of 242.86% far exceeds sales growth of 9.63%, likely due to a low base or one-off project gains.
• ROCE of only 9.32% and zero dividend yield mean the business is neither earning exceptional returns nor rewarding shareholders with cash.
• Tiny absolute scale — latest quarter sales of just ₹7 Cr and net profit of ₹1 Cr — makes earnings highly lumpy and project-dependent.

AI Analysis

At ₹4,413, the math doesn't give me a warm feeling. I am being asked to pay 75.6 times trailing earnings and 10.9 times book value for a company whose latest quarter generated only ₹7 crore of revenue and ₹1 crore of net profit. That is a very rich entrance price for a very small, project-driven business. As Graham said, price is what you pay, value is what you get. Here the price leaves almost no margin of safety. Let's look at the positives. Return on equity is a respectable 15.07%, and the Piotroski F-Score of 7/9 suggests the financial health has improved. Sales are growing at 9.63%, and the reported profit growth of 242.86% is eye-catching. But that kind of profit growth, with sales growing less than 10%, usually means a low base, a one-time gain, or a project completion — not a durable compounding engine. The PEG of 0.60 is only meaningful if that growth is repeatable, and in real estate, it usually isn't. I am also concerned by a ROCE of 9.32% — no better than ordinary — and a dividend yield of zero. The company retains all capital, so management must earn a very high return on that retained book value to justify 10.87 times book. A book value of ₹405.83 against a ₹4,413 share price means I'm paying for years of future brilliance. That may work if the project pipeline is exceptional, but I have no data on debt, promoter holding, or cash flows. In a cyclical business with tiny absolute numbers, I want to buy with a cushion, not without one. At this price, I would wait.

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