Raunaq Intl. (537840)

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

Key Financials

Strengths

• Revenue momentum: 132.53% sales growth shows the company is not stagnant.
• Backward-looking profitability: ROE of 25.34% and ROCE of 15.05% are respectable if sustainable.
• Valuation multiples: P/E of 9.59 and P/B of 1.73 are not demanding if earnings recover.
• Book value of ₹21.60 provides some tangible backing against a price of ₹37.41.

Concerns

• Latest quarter shows a net loss of ₹1 crore on ₹9 crore of sales; profit growth is -317.39%.
• Piotroski F-score of 4/9 indicates weak financial health.
• No dividend and a price below the 52-week low of ₹42.14 point to negative market sentiment.
• Critical data missing: promoter holding and debt/equity are N/A, and FairStock says insufficient data.

AI Analysis

Let me start with what I cannot know. Promoter holding is not available, debt-equity is not available, and FairStock says insufficient data. In a ₹13 crore microcap, that absence of information is a red flag, not a detail. The market price is ₹37.41, below the 52-week low of ₹42.14. I have to ask: is Mr. Market crazy, or is he seeing something I need to respect? Trailing P/E of 9.59 and P/B of 1.73 look reasonable, and the past ROE of 25.34% and ROCE of 15.05% are far from terrible. But the latest quarter tells a different story: ₹9 crore of sales and a ₹1 crore net loss. Profit growth of -317.39% is not a blip; it is deterioration. Civil construction in India is a low-moat, working-capital-heavy, cyclical business. You don't get a durable competitive advantage just by executing projects; you survive on orders, execution, and cash flow. The 132.53% sales growth is nice, but unprofitable growth can destroy value. A Piotroski score of 4/9 tells me the financial health is weak. There is no dividend; as a minority shareholder, I get no compensation while I wait. The PEG ratio of 0.07 is nonsense when profits are collapsing. This is not a Buffett-style compounder. It may be a cyclical or a trading vehicle, not an investment. I need positive quarterly earnings, disclosed debt and promoter holdings, and proof that ROE is real and not a fleeting arithmetic artifact. Until then, price is the only number I have, and a low price is not automatically cheap. In Graham's language, price is what you pay; value is what you get. Here, I don't see enough value or safety to invest.

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