Rap Corp (531583)

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

Key Financials

Strengths

• Trades at ₹24.55 vs book value ₹105.90, giving a P/B of only 0.23 — a deep discount to stated book value.
• Trailing P/E of 0.45 and ROE of 62.67% indicate last reported earnings were high relative to price and equity.
• Reported profit growth of 99.21% suggests a sharp jump in trailing profits, though verification is needed.
• Piotroski F-Score of 5/9 is moderate and offers some signs of basic financial resilience.

Concerns

• Latest quarter shows sales of ₹0 Cr and net profit of ₹-0 Cr — no active revenue or operating earnings.
• ROCE is -15.04%, meaning the company is destroying value on an operating-return basis.
• No dividend, no promoter-holding data, and no debt/equity figure make ownership structure and financial leverage unverifiable.
• Stock trades near its 52-week low of ₹23.45, down from ₹49.10, reflecting strong market skepticism.

AI Analysis

At ₹24.55, Rap Corp looks like a classic Graham cigar butt: I am paying ₹15 crore for a business with a book value of ₹105.90 per share, so the price-to-book is only 0.23. On the surface, that seems to offer a substantial margin of safety. But I must ask what the book value is made of, and whether the business can earn an acceptable return on it. The reported ROE of 62.67% and P/E of 0.45 appear spectacular, yet they conflict with a negative ROCE of -15.04% and a latest quarter with sales of ₹0 Cr and net profit of ₹-0 Cr. When sales are zero and profit is zero, a P/E and profit-growth figure of 99.21% are statistical artifacts, not evidence of earning power. Graham taught me to prefer a business with stable earnings over one that looks cheap on paper but has no active operations. There is no dividend yield, no promoter-holding data, and no debt/equity figure, so I cannot judge whether this asset base is real, unencumbered, or independently valued. At half the 52-week high, the market is clearly not sharing my optimism. This is an asset play if the net assets can be realized, not a franchise. I would not rely on ROE or P/E here; instead, I need an audited balance sheet, a clear explanation of the assets, and evidence of what the company actually does. Until then, the cheapness is a trap or an opportunity, and I cannot distinguish the two with the data provided.

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