Rishi Techtex (523021)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am wary of falling in love with a price tag. At ₹62.88, Rishi Techtex has a market cap of just ₹48 crore, trades at 9.54 times earnings and 1.48 times book value. On the surface, that looks cheap, especially with a PEG ratio of 0.32 and reported profit growth of 48.39%. Sales are growing 10.35%, which is decent for a small packaging company. But the latest quarter shows ₹35 crore of sales and net profit of ₹0 crore. A company that has zero profit in its most recent quarter while earning a full-year profit cannot pass my smell test. The 48% profit growth is probably a low-base effect, not proof of a durable franchise. Book value is ₹42.55, so the downside is partly cushioned, but return on equity is only 9.46% and ROCE 10.42%. Those are commodity business numbers, not wide-moat economics. Packaging is a competitive industry, and without pricing power or a dominant share, margins can be cut in an instant. There is no dividend yield, promoter holding and debt/equity data are missing, and the stock is at its 52-week high. The Piotroski score of 7 does give me some comfort about recent financial health, but it cannot replace evidence of consistent earnings. Benjamin Graham would want margin of safety; at 1.48 times book with a weak latest quarter, I do not see enough of it. This is a statistically interesting small cap, but not yet a business I would buy. I need to see quarterly profit return, better disclosure, and proof that growth is converting into cash before I invest.

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