Roopa Industries (530991)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹57.39, Roopa Industries is a micro-cap pharmaceutical company with a market cap of just ₹45 crore. I like simple businesses, but I also demand evidence of a durable moat. Here I see a business with modest economics: return on equity is 11.84% and return on capital employed is 11.96%. That is okay, but not the kind of compounding return that creates wealth over decades. The growth story is mixed. Sales grew 9.14%, yet profit advanced only 1.32%. That tells me revenue is not flowing to the bottom line; costs or competition are absorbing the benefit. The latest quarter shows ₹34 crore of sales but only ₹1 crore of net profit, a margin under 3%. A pharmaceutical company needs scale, pricing power, or unique products to justify a P/E of 18.65. With a PEG ratio of 2.60, the market is paying a premium for very modest earnings growth. Book value is ₹22.33, so I am paying 2.57 times tangible equity. Dividend yield is zero; I receive no cash while waiting. The Piotroski F-score of 7/9 is encouraging, suggesting decent financial-signal health, but I cannot assess leverage because debt/equity is not available, and promoter holding is also not disclosed. For a value investor, undisclosed ownership and leverage data are red flags. In Graham’s language, there is no margin of safety at this price. A micro-cap with low margins, weak profit growth, and a zero dividend should trade at a discount, not at 18.65 times earnings. This looks like a slow grower with some operational improvement, but not an opportunity I can commit to without better disclosure and a wider margin of safety.

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