Rasandik Engg. (522207)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹111.3 |
| Market Cap | ₹66.85 Cr |
| P/E Ratio | 0 |
| ROCE | -5.56% |
| ROE | -5.22% |
| Dividend Yield | 0% |
| Profit Growth | -113.52% |
| Debt/Equity | — |
| Sales Growth | 54.32% |
| 52-Week Range | ₹47.05 — ₹111.3 |
| Sector | Auto Components |
| Book Value | ₹169.43 |
Strengths
- Trades at P/B of 0.66, a 34% discount to book value, offering potential asset backing.
- Sales growth of 54.32% shows strong demand or order inflows.
- Market cap of ₹67 Cr is small but allows niche opportunities if fundamentals improve.
- Latest quarter sales of ₹22 Cr indicate an active operating business, not a shell.
Concerns
- Negative ROE (-5.22%) and ROCE (-5.56%) means the company is destroying shareholder capital.
- Profit growth -113.52% with a net loss of ₹1 Cr in the latest quarter shows no near-term profitability.
- Piotroski F-score of 3/9 signals poor financial health and high distress risk.
- Zero dividend yield provides no income while waiting for a turnaround.
AI Analysis
Looking at Rasandik Engg, I see a classic value trap warning. The stock trades at ₹111.30 against a book value of ₹169.43 — a 34% discount. That sounds like the margin of safety Graham taught us to seek. But a low P/B is only the starting point, not the conclusion. This company is losing money: ROE is -5.22%, ROCE -5.56%, and the latest quarter shows a net loss of ₹1 crore on sales of ₹22 crore. The P/E is meaningless at 0.00 because there are no earnings to speak of. Profit growth is down -113.52%, so this is not a temporary hiccup — it's erosion. Yes, sales grew 54.32%, but I've seen many auto component firms chase revenue without pricing power, especially in a cyclical, competitive industry. What moat does Rasandik have? I don't see one from these numbers. The Piotroski F-score of 3 out of 9 strengthens my concern; the financial health is poor. There is no dividend to compensate me while I wait. At a market cap of just ₹67 crore, this is a tiny player. A cheap stock that stays cheap and loses money is not an investment; it is a speculation. The 52-week range shows the price has already doubled from ₹47 to ₹111, perhaps on hope. But hope is not a strategy. If the business can turn profitable and prove that the book value is real and productive, there could be upside. Until then, I would keep it on the watchlist, not in the portfolio.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer