Rajnish Retail (530525)
CyclicalFairStock Score: 9/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹77.14 |
| Market Cap | ₹1,199.37 Cr |
| P/E Ratio | 0 |
| ROCE | 2.07% |
| ROE | -1.06% |
| Dividend Yield | 0% |
| Profit Growth | -288.89% |
| Debt/Equity | — |
| Sales Growth | 36.62% |
| 52-Week Range | ₹2 — ₹77.14 |
| Sector | Consumer Durables |
| Book Value | ₹4.88 |
Strengths
- Latest quarter sales of ₹32 crore show ongoing business activity.
- Sales growth of 36.62% indicates revenue momentum.
- ROCE is positive at 2.07%, so operations generate some return.
Concerns
- Profit growth at -288.89% and P/E of 0.00 mean earnings are negative and worsening.
- ROE of -1.06% shows shareholders' equity is not earning a return.
- P/B of 15.81 versus book value of ₹4.88 implies an extremely expensive valuation.
- Dividend yield is 0.00%, and promoter holding and debt/equity are not disclosed.
AI Analysis
When I look at Rajnish Retail, the first thing I ask is: what is the owner earning? The answer is nothing. The P/E is zero, profit growth is minus 288.89%, and last quarter's net profit was minus ₹1 crore on sales of ₹32 crore. A business can have fast-growing sales, 36.62% here, but if it cannot convert those sales into profit, it is not an investment. The ROE is -1.06%, so equity is earning no return, and ROCE of 2.07% is far below what I would demand. Book value is ₹4.88, yet the market price is ₹77.14, a P/B of 15.81. I would be paying nearly sixteen times book for a company with negative earnings. Benjamin Graham taught me that price is what you pay, value is what you get; here the price already assumes a perfect future. The 52-week range of ₹2 to ₹77.14 tells me Mr. Market has been in a speculative mood. With an F-Score of 4/9 and a FairStock Score of 9/100 marked risky, the financial health does not support the enthusiasm. There is no dividend, no reported promoter holding, and no debt/equity figure to reassure me. The only positive is growth in sales, but growth alone is not a moat. In gems and jewellery, cycles can turn quickly, and a weak balance sheet will hurt. I need to see a clear path to positive net profit, better margins, and evidence that management is using capital wisely. Until then, this is a speculation, not a value investment. I would keep it on a watch list and not commit capital.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer