Raghuvansh Agro. (538921)

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

Key Financials

Strengths

• Stated trailing P/E of 14.73 is not extreme on reported earnings.
• ROCE is positive at 9.27%, showing some return on capital employed.
• Latest quarter is profitable with ₹3 Cr net profit, so the company is not in a loss-making state.
• Small market cap of ₹256 Cr leaves room for growth if the agricultural business stabilises.

Concerns

• Sales and profit are contracting: -11.16% and -22.80% respectively.
• Piotroski F-Score of 3/9 indicates weak financial health and poor operating quality.
• Latest quarter's ₹4 Cr sales versus ₹3 Cr profit implies an unsustainable-looking ~75% net margin.
• No dividend and a 52-week rally from ₹40.08 to ₹214.50 despite falling earnings point to speculative price action.

AI Analysis

Let me start with what I can see. Raghuvansh Agro trades at ₹214.50, market cap ₹256 Cr, and a stated P/E of 14.73. That multiple is only useful if earnings are dependable. Here, earnings are not dependable. Sales fell 11.16% and profit fell 22.80%. The Piotroski F-Score is just 3 out of 9—a clear sign of weak financial health. The latest quarter adds another red flag: sales of only ₹4 Cr and net profit of ₹3 Cr imply a 75% net margin. That is extraordinary in any agricultural business, and it makes me wonder if one-off gains are flattering the bottom line. If I annualise those quarterly numbers, market cap of ₹256 Cr implies a price-to-sales of roughly 16 and a price-to-earnings closer to 21, not the stated 14.73. The numbers as presented do not reconcile, so I cannot trust them. There is no durable moat here. 'Other agricultural products' is a commodity-like space with no pricing power and heavy competition. ROCE of 9.27% is modest but still weak for an enterprise carrying this much uncertainty. There is no dividend, so the shareholder's only return is price appreciation. And what appreciation: the stock has gone from ₹40.08 to ₹214.50 in a year, a 435% jump, even as the business shrank. Graham would say the price is not what you pay; value is what you get. Ignoring the missing book value, debt, and promoter data, even the available data fails to give a margin of safety. I need proof of stabilised revenue, honest margins, and full disclosure before I would consider investing.

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