Ratnabhumi Dev. (540796)

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

Key Financials

Strengths

• Positive ROE of 14.10% and ROCE of 11.27% show the existing capital base still earns a return.
• Latest quarter is profitable: net profit of ₹1 Cr on sales of ₹8 Cr.
• Book value of ₹27.64 per share provides some tangible asset backing, though the market price is far above it.
• Profit decline of only -6.15% despite a sales collapse hints at some margin discipline.

Concerns

• Sales collapsed by 83.07%; latest quarterly revenue of ₹8 Cr is extremely small.
• Valuation is rich: P/E of 48.75 and P/B of 5.20 leave no margin of safety.
• Piotroski F-Score of 3/9 signals weak financial health and possible deterioration.
• No dividend yield, and promoter holding plus debt/equity are undisclosed, adding governance and leverage uncertainty.

AI Analysis

Let's start with what the numbers tell me. Ratnabhumi Dev is a small real estate developer with a market cap of ₹197 Cr, but the latest quarter shows sales of just ₹8 Cr and net profit of ₹1 Cr. That puts the stock at a P/E of 48.75 and a P/B of 5.20 against book value of ₹27.64. A business whose sales have collapsed by 83.07% cannot be valued as a stable compounder. Graham taught me to focus on margin of safety, and there is none here. The 14.10% ROE and 11.27% ROCE are respectable, but they do not justify a premium of more than five times book when revenue is shrinking and profit is still falling by 6.15%. I also see no durable moat: this is project-based real estate, dependent on land, approvals and execution, not on repeat franchise economics. The Piotroski F-Score of 3/9 is a serious red flag; it suggests deteriorating financial health rather than a company turning the corner. There is zero dividend yield, so I get no cash flow while I wait. Promoter holding and debt-equity data are not disclosed, which is uncomfortable in a capital-intensive developer where leverage can sink a promoter. The stock has fallen from ₹280, but a lower price is not the same as an attractive price. I would need to see quarterly sales stabilise, net profit grow, a better F-Score, and a valuation with some buffer over book. Until the evidence shows a genuine fundamental recovery, this stays on my 'too hard' pile.

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