Rajkot Inv.Trust (539495)

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

Key Financials

Strengths

• Price-to-book of 0.86 versus book value of ₹52.23 offers an asset-based margin of safety.
• Piotroski F-Score of 6/9 suggests the company is not in immediate financial distress.
• Trailing P/E of 11.88 and PEG of 0.07 optically leave room for value if earnings recover.
• Market cap of ₹5 Cr is small but could allow outsized gains if assets are unlocked.

Concerns

• Latest quarter shows sales of ₹0 Cr and net profit of ₹0 Cr—no current operating activity.
• Sales growth is -77.78%, indicating a severe top-line collapse.
• ROCE of 0.74% and zero dividend yield mean the capital earns almost nothing for shareholders.
• Promoter holding and debt/equity are not disclosed, leaving governance and leverage risks unclear.

AI Analysis

At ₹45, Rajkot Inv.Trust is not the kind of business I would normally study: a ₹5 crore market cap NBFC with no meaningful operating history visible in these numbers. The one Graham-style attraction is the balance sheet: book value is ₹52.23, so I am paying 86 paise for every rupee of book. That creates a possible margin of safety. But owning a stock is owning a business, and the business is not earning. The latest quarter shows zero sales and zero net profit; annual sales have collapsed by 77.78%. A 166.67% profit growth number is a mathematical echo, not evidence of a recovery, from that base. Return on equity is only 6.80%, and return on capital employed is a miserable 0.74%—this capital is barely working. There is no dividend to reward patience. The Piotroski score of 6/9 is mildly comforting, but with debt/equity not disclosed and promoter holding not reported, I cannot fully assess financial risk or minority-shareholder alignment. The P/E of 11.88 and PEG of 0.07 are mechanical outputs on negligible earnings; they tell me nothing about intrinsic value. In Graham's terms, this is a cigar butt: cheap, perhaps, but with only one puff available. It only becomes interesting if management can revive earning power, or if the assets are genuinely worth book and can be unlocked. The 52-week range of ₹32 to ₹53.90 suggests speculation, not compounding. I prefer a wonderful business at a fair price, as Buffett says. Rajkot Inv.Trust may deserve a small watchlist slot as an asset play, but not my capital until I see sales, profits, promoter disclosure, and a demonstrated plan to improve returns.

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