Rishiroop (526492)

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

Key Financials

Strengths

• Low headline valuation: P/E of 8.54 and P/B of 1.16, with book value at ₹154.30 per share.
• Recent profit improvement: latest quarter net profit of ₹3 Cr on sales of ₹15 Cr indicates a strong current margin.
• Piotroski F-Score of 6/9 suggests moderately healthy financials and no obvious distress signal.
• ROCE of 10.89% is respectable for a small-cap rubber company and provides some cushion over ROE.
• Modest dividend yield of 1.62% at the current price gives a small income floor.

Concerns

• Sales growth is negative at -10.10%; the 236.65% profit growth may be base-effect or cost-driven, not demand-led.
• Low ROE of 7.25% signals a mediocre core business without strong pricing power or moat.
• Debt/equity and promoter holding are N/A, so leverage and management alignment cannot be verified.
• Stock trading at its 52-week high of ₹178.30 after a range from ₹71.50 leaves limited margin of safety if the profit recovery stalls.

AI Analysis

Looking at Rishiroop, I am reminded that a low price alone is not an invitation. At ₹178.30, the stock trades at 8.54 times earnings and 1.16 times book value—₹154.30 of book behind every share. That is not the bargain-basement valuation Graham would cheer, but it is not expensive. However, I must ask what kind of business I am buying. The top line fell 10.10%, and that worries me. A business that cannot grow sales rarely creates lasting value. The profit growth of 236.65% looks dazzling, but such numbers often come from a low base or extraordinary items. The latest quarter's net profit of ₹3 Cr on sales of ₹15 Cr implies a strong margin, yet I do not know if that is sustainable. The return on equity is only 7.25%, and although ROCE at 10.89% is better, neither signals a superior franchise. This does not have the economic moat I seek. Rubber is a competitive, cyclical input industry; pricing power is usually scarce. Piotroski score of 6/9 is an okay sign, not a great one. Dividend yield of 1.62% gives a little comfort, but I want management that creates value through reinvestment. The stock is at its 52-week high, having risen from ₹71.50. With sales shrinking, this looks more like a turnaround or cyclical recovery than a compounder. I would need several quarters of improving sales, stable margins, and honest balance-sheet disclosures—debt/equity and promoter holding are N/A, which limits trust—before I treat this as a serious investment. At the right price, it could be an asset play, but today I am an observer, not an eager buyer.

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