Rolcon Engg. Co. (505807)
CyclicalScore breakdown: P/E: 3/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹586 |
| Market Cap | ₹46.63 Cr |
| P/E Ratio | 11.19 |
| ROCE | 18.33% |
| ROE | 18.01% |
| Dividend Yield | 0.39% |
| Profit Growth | 160.34% |
| Debt/Equity | — |
| Sales Growth | 0.31% |
| 52-Week Range | ₹586.05 — ₹914.3 |
| Sector | Industrial Products |
| Book Value | ₹316.42 |
Strengths
- ROE of 18.01% and ROCE of 18.33% show efficient capital deployment
- Piotroski F-score of 7/9 indicates sound financial health
- Low P/E of 11.19 offers a modest earnings yield
- Debt/Equity not reported, suggesting no significant leverage
- Strong book value of ₹316.42 per share supports downside
Concerns
- Sales growth of just 0.31% shows a stagnant top line
- Latest quarter net profit of ₹0 Cr raises doubt about earnings quality
- Stock is down ~39% from its 52-week high of ₹962.40
- Dividend yield of 0.39% is negligible for income-focused investors
AI Analysis
When I look at Rolcon Engineering, the first thing I notice is a company earning a solid 18% ROE and 18.33% ROCE. Those are respectable figures for any industrial business. But as Graham taught me, a single year's return means little if the underlying earnings power is unstable. Sales growth is just 0.31%—essentially flat—yet profit growth is reported at 160%. That kind of divergence usually comes from a low base or one-time gains, not durable compounding. The latest quarter shows net profit of ₹0 crore on sales of ₹13 crore, which makes me question the sustainability of recent earnings. The stock trades at ₹586 with a market cap of ₹47 crore, just 11.19 times trailing earnings. That looks cheap at first glance, but you're paying 1.85 times book value of ₹316.42. The shares have fallen from a 52-week high of ₹962, and the dividend yield is a skinny 0.39%. The Piotroski F-score of 7/9 suggests the balance sheet is healthy, but I don't see a strong moat when sales are stagnant and profit is volatile. The PEG of 0.09 is a trap—it uses that bloated profit growth figure. This appears to be a cyclical industrial business enjoying a good spell, not a predictable compounder. I'd demand a wider margin of safety before putting money in.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer