Rodium Realty (531822)

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

Key Financials

Strengths

• P/E of 5.77 and PEG of 0.11 point to statistically cheap valuation
• Sales growth of 73.12% and high ROE of 60.60% show strong recent momentum
• Piotroski F-Score of 7/9 suggests decent fundamental health
• Latest quarter profitable with sales of ₹29 Cr and net profit of ₹2 Cr

Concerns

• ROCE of only 7.47% vs ROE of 60.60% implies heavy leverage; debt/equity not disclosed
• Current price ₹88.85 is below the 52-week range of ₹141.25-₹224.80, indicating a sharp de-rating
• No dividend and no promoter holding data; market cap of ₹29 Cr adds illiquidity and transparency risk
• Real estate is cyclical and project-driven; 73% sales growth may not be sustainable

AI Analysis

At ₹88.85, with a P/E of 5.77 and a market cap of just ₹29 Cr, Rodium Realty looks like a cheap small-cap. But cheapness alone is never a thesis. The 73% sales growth and 60.6% ROE are impressive on the surface. Yet when I dig deeper, I see ROCE of only 7.47%. That tells me the returns on equity are being juiced by borrowings, not by operational excellence. In a real estate business, that is a red flag. I cannot see debt/equity data, and that makes me uneasy. Realty is inherently cyclical and capital-hungry; a high ROE supported by leverage can evaporate when projects slow or interest rates rise. The stock trades at 2.27 times book value of ₹39.15. That is not deeply undervalued for a leveraged developer. The price is far below the 52-week range of ₹141.25 to ₹224.80, so the market has already lost confidence. With no dividend and no promoter holding disclosure, I am an outsider trying to value a project-based business without full information. Piotroski F-score of 7/9 is encouraging, and PEG of 0.11 suggests growth is cheap. But profit growth of 28% against sales growth of 73% indicates margins are compressing. Latest quarter sales ₹29 Cr, net profit ₹2 Cr – that's a thin 6.9% margin. In realty, project lifecycles make quarterly figures unreliable. As Graham said, the investor's chief problem is himself. The low P/E and high growth tempt me, but the missing balance sheet data and cyclical nature of the industry force me to conclude this is a speculative cyclical, not a compounder. I would demand a much larger margin of safety or verify the debt and project cash flows before investing a rupee.

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