Rajasthan Securities (526873)

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

Key Financials

Strengths

• Historical ROE of 71.20% shows the small equity base once generated high returns.
• Trailing P/E of 13.86 indicates some past earnings power, implying it was not always a loss-making shell.
• Book value remains positive at ₹3.87 per share, so net worth has not yet turned negative.
• Currently 45% below the 52-week high of ₹66.99, reducing some speculative froth.

Concerns

• Latest quarter had zero revenue and a net loss of ₹24 crore, leaving no visible operating engine.
• Profit growth of -474.26% and ROCE of -0.49% point to severe earnings collapse and poor capital efficiency.
• Piotroski F-Score of 2/9 indicates weak financial health and possible distress.
• P/B of 9.49, zero dividend, and no promoter holding disclosure mean investors rely entirely on speculation with poor governance visibility.

AI Analysis

Reading Rajasthan Securities, I am reminded of Graham's warning: the stock market is not a voting machine but a weighing machine, and right now the scale shows no earning power. The latest quarter reports zero sales and a net loss of ₹24 crore. A market capitalisation of ₹288 crore on such a business is not an investment; it is a hope. The P/E of 13.86 is stale arithmetic from a past that no longer exists, while profit growth of -474.26% tells me earnings have collapsed. Book value is only ₹3.87 per share, so paying ₹36.73 means 9.49 times book for a company whose ROCE is -0.49%. The Piotroski score of 2/9 reinforces the picture of poor financial health. No dividend, no promoter holding disclosure, and no debt-to-equity data leave me blind on governance and solvency. What about the positive ROE of 71.20%? That is a historical relic from a tiny equity base; a loss of ₹24 crore in one quarter can destroy a large part of that equity. Graham would demand a margin of safety, but here the downside is enormous and the disclosed positives are only price-related: the stock is 45% below its 52-week high of ₹66.99 and above its low of ₹29.00. That is not value, that is volatility. I cannot underwrite a refinery and marketing company with zero sales, negative earnings, and a failing Piotroski score. If there is a turnaround plan, I need audited asset details, cash position, and evidence of a path to profit. Until then, this belongs in the 'too hard' pile. The price may be lower than before, but without earnings and a moat, I cannot call it cheap.

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