Raj Packaging (530111)

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

Key Financials

Strengths

• Price-to-book of 0.98 means shares trade slightly below book value of ₹28.56, offering a net asset cushion.
• Piotroski F-Score of 6/9 suggests reasonable financial health despite weak profitability.
• Sales growth of 2.9% shows the business is at least not shrinking in a competitive packaging industry.
• Low market cap of ₹13 crore and a ₹28.10 price give it the profile of a small, monitored asset-based candidate.

Concerns

• Earnings are essentially absent: P/E is 0.00 and the latest quarter shows net profit of ₹0 crore on ₹7 crore of sales.
• ROE of -0.08% and ROCE of -2.90% indicate capital is not earning a satisfactory return.
• Zero dividend yield means shareholders receive no income while waiting for a recovery.
• Debt/equity and promoter holding are not disclosed, leaving leverage and governance visibility unclear.

AI Analysis

Let me look at Raj Packaging as I would any small business. The market capitalisation is only ₹13 crore, and at ₹28.10 the shares trade just below book value of ₹28.56. In the Graham tradition, paying less than net assets is a starting point, not a conclusion. The packaging industry is competitive, and this company has not proven it can earn good returns on those assets. Return on equity is -0.08% and return on capital employed is -2.90%. The latest quarter shows sales of ₹7 crore but net profit of ₹0 crore. With a P/E of 0.00, the market is saying earnings are not there to value. The reported 100% profit growth is meaningless from a near-zero base; I would ignore it. Sales growth of 2.9% is modest at best. On the positive side, the Piotroski F-Score of 6 out of 9 hints at reasonable financial health, and there is no dividend, so any return must come from the business itself. The 52-week range of ₹23.99 to ₹45.85 tells me this stock has been volatile and has fallen hard. Debt/equity is not available, so I cannot cheer a clean balance sheet without evidence. This looks like an asset play: you get assets at a small discount, but the earning power is absent. I would need to see a clear path to positive and growing earnings before acting. A cheap price for a weak business is not automatically a bargain; it is only a bargain if the assets and future earnings support it.

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