R R Securities (530917)

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

Key Financials

Strengths

• Price of ₹12 is deeply below book value of ₹19.02, offering a 0.63 price-to-book margin of safety if assets are genuine.
• Tiny market cap of ₹4 Cr leaves room for a meaningful re-rating if assets are unlocked or deployed.
• Piotroski F-score of 6/9 indicates reasonably stable financial health on the limited data provided.
• Apparent absence of meaningful debt reduces balance-sheet risk.

Concerns

• Latest quarter sales and net profit are both ₹0 Cr, showing no active operating business.
• ROE of 2.04% and ROCE of 1.66% indicate the assets are earning negligible returns on equity and capital.
• P/E of 105 with zero dividend yield offers no income support and relies on an unsustainable earnings base.
• Price below the stated 52-week low of ₹14.75 signals weak investor demand and possible asset-quality doubts.

AI Analysis

At ₹12, R R Securities has a market cap of just ₹4 crore against a book value of ₹19.02 per share. That is the definition of an asset play: every rupee of stated net worth costs only 63 paise. But Graham taught us that a bargain must also have a path to value realization. Here, the business engine is quiet. Return on equity is a meager 2.04%, and return on capital is only 1.66%. The latest quarter shows sales of ₹0 crore and net profit of ₹0 crore. That is not an operating business; it is a balance sheet story. The 166.67% profit growth and PEG of 0.63 are statistical illusions created by a minuscule earnings base. A P/E of 105 with zero latest-quarter earnings tells us current earning power is close to nil. There is no dividend to compensate me while waiting. The Piotroski F-score of 6/9 suggests the financial position is not deteriorating, but with no revenue, asset quality is impossible to judge from the income statement alone. The 52-week range of ₹14.75 to ₹51.85, and a price now below that low, reminds me that micro-caps with thin investor interest can fall far below stated intrinsic value—or fall because the assets are not worth the carrying value. What would interest me is management's plan: do they intend to deploy these assets, sell them, or wind down? If book value is real, there may be something here; if not, a 0.63 price-to-book can be a value trap. I would need full financials, details of investments and receivables, promoter intent, and an explanation for why no business activity is generating revenue. Until then, this is a small optionality, not a conviction investment.

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