Radhe Develop. (531273)
CyclicalScore breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹3.71 |
| Market Cap | ₹194.31 Cr |
| P/E Ratio | 18.5 |
| ROCE | 2.63% |
| ROE | 9.06% |
| Dividend Yield | 0% |
| Profit Growth | -10.87% |
| Debt/Equity | — |
| Sales Growth | 0% |
| 52-Week Range | ₹1.16 — ₹3.71 |
| Sector | Realty |
| Book Value | ₹1.3 |
Strengths
- Book value of ₹1.30 per share offers some tangible asset backing.
- ROE of 9.06% shows equity has not been entirely unprofitable historically.
- Market cap of ₹194 Cr is small; a single successful project could matter, though that is optionality, not certainty.
- P/E of 18.5 is not a bubble-level multiple if earnings were stable — but they are not.
Concerns
- Latest quarter reported ₹0 Cr sales and ₹2 Cr net loss, indicating no active revenue engine.
- Sales growth is 0% and profit growth is -10.87%.
- Piotroski F-score of 3/9 suggests weak profitability, leverage, and efficiency signals.
- At 2.85 times book and no dividend, investors are paying a substantial premium for a low-return, shrinking business; promoter holding is also not disclosed.
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer