B N Rathi Sec. (523019)

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

Key Financials

Strengths

• Trailing P/E of 8.91 and PEG of 0.13 show earnings growth relative to price
• Sales growth of 34.24% and profit growth of 98.03% reflect strong momentum
• Piotroski F-score of 7/9 suggests solid fundamental health
• ROCE of 20.12% and dividend yield of 3.26% add shareholder appeal

Concerns

• P/B of 9.74 means paying nearly 10x book value for a 12.94% ROE
• 52-week range of ₹10.81-₹155.40 shows a >10x move; current price is at the top with no margin of safety
• 98% profit growth is unlikely to sustain; PEG based on one-year surge can mislead
• Debt/Equity and promoter holding are N/A — insufficient data to gauge leverage and governance

AI Analysis

At ₹155.40, B N Rathi Sec. looks like a classic fast-growing small-cap at first glance. The trailing P/E of 8.91 is modest, and a 98% profit jump on 34% sales growth gives a PEG of 0.13 — numbers that would make any value investor pause. But Benjamin Graham taught me to weigh the balance sheet and the quality of earnings, not just the income statement. The P/B ratio of 9.74 is the real red flag. You are paying nearly ten times book value for a company whose ROE is only 12.94%. That combination only works if the growth persists for years; if the 98% profit growth normalises even to the sales growth rate of 34%, the optics sour quickly. The Piotroski F-score of 7 suggests the recent improvement is real on a fundamental level, and ROCE of 20.12% indicates decent capital efficiency. A 3.26% dividend yield offers some tangible return while you wait. But the 52-week range of ₹10.81 to ₹155.40 is a scream: the stock has gone up more than tenfold, and buying at the top of that range is the opposite of margin of safety. The latest quarter's ₹3 Cr net profit on ₹15 Cr sales is respectable, but one quarter and one year do not build a fortress. In financial services, without clear promoter holding or leverage data, I must treat this as a growth speculation rather than a compounder. I would wait for a pullback or for several more years of consistent, profitable expansion before committing capital.

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