Rotographics (I) (539922)

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

Key Financials

Strengths

• ROE of 27.46% indicates historically strong return on equity, albeit possibly leverage-driven.
• Quarterly sales of ₹10 Cr against ₹16 Cr market cap implies a modest price-to-sales ratio of ~1.6.
• Listing on NSE/BSE provides a public market for a micro-cap, though liquidity is likely thin.

Concerns

• P/E of 149.87 is unjustified with zero sales/profit growth and zero dividend.
• Latest quarter net profit is ₹0 Cr, so current earnings power is absent.
• Piotroski F-Score of 3/9 signals weak financial health.
• ROCE of 6.22% vs ROE of 27.46% implies heavy leverage or risky capital structure.

AI Analysis

Looking at Rotographics, I see a tiny ₹16 crore market cap trading at ₹45 a share. The first red flag is the earnings multiple of 149.87 – that is a price demanding perfection from a business that has produced absolutely no growth in sales or profits. The latest quarter's net profit of ₹0 crore confirms that the earning power is currently nil. A Piotroski F-Score of 3 out of 9 reinforces my suspicion: this is a financially weak operation. While the ROE of 27.46% looks impressive at first glance, the ROCE of only 6.22% tells me that the return on equity is likely coming from leverage, not from an underlying moat. That is a dangerous trade-off in a distribution business. The book value of ₹2.66 means I am paying 16.92 times book for a company with no dividend, no growth, and deteriorating fundamentals. The share price has fallen from ₹246.50 to now below the 52-week low at ₹45.01 – a falling knife, not a bargain. Ben Graham would insist on a margin of safety, and I see none here. The market cap is small, and sales of ₹10 crore in the quarter suggest a business that is still operating, but without profits, it has no margin of safety. I would need to see a clear path to profitability, a healthier balance sheet, and some signs of growth before I even put this on my watchlist. As Buffett often says, it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. This is a fair-to-poor company at an extraordinary price.

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