Risa Internatio. (530251)

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

Key Financials

Strengths

• Market cap is small at ₹11 Cr, so a successful operational revival could have an outsized effect.
• Book value per share of ₹0.39 provides some tangible asset support, even though price is above it.
• Current price of ₹0.70 is below the 52-week high of ₹1.04, reducing some entry euphoria.
• Listing on NSE/BSE gives retail investors access and price transparency.

Concerns

• Latest quarter sales are ₹0 Cr with a net loss of ₹1 Cr, showing no active earnings engine.
• ROE of -188% and ROCE of -331% indicate severe capital destruction.
• Piotroski F-score of 2/9 points to weak financial health and likely deterioration.
• P/B of 1.79 means paying a premium to book value for a loss-making business, with no margin of safety.

AI Analysis

Let me be blunt: this is not a business I would put my money into. Risa Internatio trades at ₹0.70 with a market cap of ₹11 crore, but it earns nothing. The latest quarter shows sales of ₹0 crore and a net loss of ₹1 crore. Profit growth has collapsed by 711%, and the Piotroski F-score is just 2 out of 9, indicating serious financial deterioration. Return on equity is -188% and ROCE is -331%; the company is destroying capital, not creating it. In Graham's framework, the first test is a margin of safety. Here I am asked to pay ₹0.70 for book value of ₹0.39, a price-to-book of 1.79. Paying a premium for assets that earn deeply negative returns is the opposite of value investing. There is no moat, no pricing power, no positive earnings to discount, and no dividend. Sales growth is zero. Promoter holding is not disclosed, which adds to the uncertainty. The 52-week range of ₹0.35 to ₹1.04 shows a speculative micro-cap, not a stable enterprise. I cannot calculate an intrinsic value because the company has no earnings power; any valuation would be based on hope, not arithmetic. Buffett often says it is better to buy a wonderful company at a fair price than a poor company at a bargain price. This is not even a bargain. Unless management can somehow revive operations and generate real sales, this is a value trap. I would keep this on the 'too hard' pile and walk away.

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