Radix Industries (531412)

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

Key Financials

Strengths

• ROE of 17.18% and ROCE of 18.76% show decent capital efficiency for a small personal care company.
• Piotroski F-Score of 7/9 suggests sound financial health and improving fundamentals.
• Recent profit growth of 42% demonstrates strong earnings momentum, though revenue growth lags.
• Latest quarter remains profitable with sales of ₹17 Cr and net profit of ₹1 Cr, albeit at small scale.

Concerns

• Valuation is extremely rich: P/E of 84.11, P/B of 11.99, and PEG of 3.14 leave no margin of safety.
• Profit growth of 42% far exceeds sales growth of 11.49%, raising sustainability and quality-of-earnings questions.
• Tiny scale: latest quarterly sales of ₹17 Cr and net profit of ₹1 Cr against a market cap of ₹246 Cr.
• Stock trades below its 52-week range and promoter holding is not disclosed, creating governance and visibility risk.

AI Analysis

At ₹163.25 with a market capitalisation of ₹246 Cr, Radix Industries is not a stock I could call cheap. A P/E of 84.11 and a P/B of 11.99 demand perfection, and Graham always warned against paying such prices for anything less. The business has some good numbers: ROE of 17.18%, ROCE of 18.76%, and a Piotroski F-score of 7 out of 9. That suggests a reasonably healthy small company. Profit growth of 42% looks impressive on the surface, but sales growth is only 11.49%; earnings are rising much faster than revenue, which makes me wonder whether this is real compounding or cost-cutting and one-offs. The latest quarter tells the scale: sales of just ₹17 Cr and net profit of ₹1 Cr. At a market cap of ₹246 Cr, you are paying an enormous multiple for a very small personal care player competing against giant brands. The dividend yield of 0.26% offers almost nothing while you wait. The stock is below its 52-week low range of ₹165.15-₹226.40, and promoter holding data is not available; for a value investor, unknown ownership is a red flag. FairStock also returns insufficient data, so I lack the information to build a margin of safety. This could be a fast grower in the making, but I cannot ignore valuation and visibility. Until sales growth catches up and the price gives me some protection, I would rather stay patient and watch from the sidelines.

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