Rishabh Sp. Yarn (514177)

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

Key Financials

Strengths

• No dividend payout means no cash outflow while the company is not generating positive earnings.
• The small ₹30 Cr market capitalisation leaves open the possibility of a special-situation re-rating if a genuine turnaround emerges.
• The stock trades within a defined 52-week range of ₹37.01-₹82.99, so there is observable market interest; this is a trading fact, not a fundamental quality.

Concerns

• Latest quarter shows no sales and no net profit; sales/profit growth of 0.00% means there is no earnings engine to value.
• At ₹79 against book value of ₹0.61, P/B of 129.51 leaves no margin of safety.
• ROE at -143.56% and ROCE at -36.67% indicate severe capital destruction.
• Piotroski F-Score of 2/9 is a strong distress signal; D/E and promoter holding being N/A adds opacity.

AI Analysis

Rishabh Sp. Yarn is exactly the kind of stock Graham would tell you to put aside. At ₹79, the market cap is ₹30 Cr, but the book value is just ₹0.61 per share. That means you are paying 129.5 times net assets for a company with no visible earnings. In the latest quarter, sales are ₹0 Cr and net profit is ₹-0 Cr. A P/E of 0.00 is not cheap; it is the absence of a P/E. Sales growth and profit growth are 0.00%, and the dividend yield is 0.00. This is not a wonderful textile business with a moat; it is a business destroying capital. Return on equity is -143.56%, and ROCE is -36.67%. Every rupee that goes in comes out shrunken. The Piotroski F-Score is 2 out of 9, a strong red flag. Debt/equity is N/A, so I cannot even confirm the leverage risk, and promoter holding is not disclosed. A Graham investor needs a margin of safety: tangible assets, earnings power, financial strength. This stock has none at this price. The 52-week range of ₹37.01 to ₹82.99 shows price volatility, but volatility is not value. If the company ever turns around, I want to see sales, positive operating cash flow, and a book value that is not collapsing. Until then, this is not a business to own; it is a speculation. I would rather miss the move than lose my capital to a broken balance sheet. For an Indian retail investor, Rishabh Sp. Yarn should be on the avoid list. Let the market prove the turnaround first.

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