Raghuvir Synth (514316)

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

Key Financials

Strengths

• Historical ROE of 20.75% and ROCE of 17.71% indicate efficient capital use in prior profitable periods.
• Current price ₹127.20 is near the 52-week high of ₹134.25, showing buyer interest at these levels.
• The company still generates meaningful revenue — ₹49 Cr in the latest quarter — so it has a base to potentially recover from.
• Market cap of ₹519 Cr is small, allowing room for operational improvements to have an outsized effect if the textile cycle turns.

Concerns

• Extremely high valuation: P/E of 70.08 and P/B of 16.04 against book value of only ₹7.93 offer no margin of safety.
• Business is deteriorating: sales down 41.52%, profit growth -1912.50%, and latest quarter net loss of ₹4 Cr.
• Weak financial health: Piotroski F-Score of 3/9 and FairStock Score of 0/100.
• No dividend and promoter holding not disclosed; lack of income and transparency.

AI Analysis

At ₹127.20, Raghuvir Synth's market cap is ₹519 crore. Price-to-earnings of 70 and price-to-book of 16 against book value of just ₹7.93 tell me the market is paying for a future that the latest numbers do not support. Sales have fallen 41.52% and profit growth is minus 1,912.50%. The most recent quarter earned a net loss of ₹4 crore on revenue of ₹49 crore. A Piotroski score of 3 out of 9 and a FairStock Score of 0/100 reinforce the same conclusion: financial health is weak. Graham would say price is what you pay, value is what you get. Here I cannot find value. The historical ROE of 20.75% and ROCE of 17.71% look interesting, but they are backward-looking indicators calculated on a very small equity base; with profits now negative, they are unlikely to persist. Textiles is a cyclical, competitive industry, and Raghuvir's 41% drop in sales tells me the cycle is against it. There is no dividend to reward a patient shareholder. Promoter holding is not disclosed, so I cannot judge insider alignment. The stock trades close to its 52-week high of ₹134.25, but that appears to be hope-driven speculation, not substance. As a value investor, I demand a margin of safety. At this price, with this earnings trajectory, the margin is absent. I would put this in the 'too hard' pile. There is no reason to risk capital in a business that is shrinking and losing money, no matter how cheap the story sounds. I await evidence of turnaround before revisiting.

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