Raaj Medisafe (524502)

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

Key Financials

Strengths

• Sales growth of 41.95% and profit growth of 83.50% demonstrate strong momentum.
• Piotroski F-Score of 7/9 indicates solid fundamental health on multiple metrics.
• ROE of 38.10% is exceptional, showing high return on shareholder equity.
• P/E of 13.72 with PEG of 0.22 suggests the market has not fully priced in the growth.
• Trading at its 52-week high of ₹98.70 reflects current investor confidence.

Concerns

• P/B of 5.77 implies a steep premium to book value of ₹17.10.
• The wide gap between ROE (38.10%) and ROCE (15.02%) suggests significant leverage; debt-to-equity is undisclosed (N/A), a red flag.
• No dividend yield forces total reliance on capital appreciation.
• Promoter holding is N/A, creating uncertainty about alignment with minority shareholders.

AI Analysis

At first glance, Raaj Medisafe looks like a Graham paradox: a small packaging company growing like a tech stock but trading at a P/E of just 13.72. Sales jumped 41.95% and profit surged 83.50%, giving a PEG of 0.22 — a rare combination of growth and apparent value. But I must dig deeper. The Piotroski F-Score of 7/9 is encouraging, and ROE of 38.10% is exceptional. Yet ROCE is only 15.02%, a gap that whispers of leverage. Debt-to-equity is listed as N/A, which does not calm my nerves; a value investor cannot trust what is hidden. Book value is just ₹17.10, so paying ₹98.70 means 5.77 times book — a demanding price for a business in packaging, a competitive and largely commodity-like field. The latest quarter shows ₹21 Cr sales and ₹2 Cr profit, a net margin under 10%, so the franchise is not a pricing powerhouse. There is no dividend yield, meaning the entire return depends on future growth. With a market cap of only ₹130 Cr, this is a nimble boat in a stormy sea. If the growth is real and debt is controlled, the current P/E is a gift. But with promoter holding undisclosed and zero yield, I would demand a wider margin of safety. This is a fast grower — exciting, but not a classic Buffett bedrock. I would watch it closely, not marry it.

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