Radhe Develop. (531273)

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

Key Financials

AI Analysis

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

Radhe Develop looks like the sort of business I would not want to own. I start with returns: ROCE is just 2.63%, meaning every rupee of capital employed is barely earning anything. ROE at 9.06% is decent only as a headline, but profit growth is -10.87%, sales growth is zero, and the latest quarter shows no sales and a ₹2 Cr net loss. That is a deteriorating franchise. Real estate development has no durable moat unless land, execution, or brand is special. The Piotroski score of 3/9 reinforces weak financial health. Now, valuation: at ₹3.71, the stock trades at 18.5 times earnings and 2.85 times the ₹1.30 book value. For a company paying no dividend and showing zero revenue, 2.85 times book is a demanding price. The market cap of ₹194 Cr is being supported by hope, not by numbers. Graham taught me to buy with a margin of safety; here the margin is on the wrong side—price is above book, earnings are fading, and the latest quarter is loss-making. This is a speculative cyclical. I would pass until there is a track record of project sales, better ROCE, and no quarterly losses. Put it in the too-hard pile.

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