Rishi Techtex (523021)

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

Key Financials

Strengths

• Low P/E of 9.54 and P/B of 1.48 keep the valuation modest for a small cap.
• PEG of 0.32 and reported profit growth of 48.39% suggest potential cheapness relative to growth.
• Piotroski F-score of 7/9 indicates reasonably healthy recent financials.
• Sales growth of 10.35% and book value per share of ₹42.55 provide some fundamental footing.

Concerns

• Latest quarter net profit is ₹0 crore on ₹35 crore of sales, undermining the reliability of the stated profit growth.
• ROE of 9.46% and ROCE of 10.42% are below the level I expect from a high-quality compounding business.
• No dividend yield, so minority shareholders depend entirely on capital appreciation.
• Key data such as promoter holding and debt/equity are unavailable, raising transparency concerns.

AI Analysis

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.

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