Roni Households (542145)

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

Key Financials

Strengths

• Piotroski F-Score of 6/9 suggests the company is not in immediate financial distress and has some short-term fundamental health.
• Reported profit growth of 107.69% and PEG of 0.62 indicate improving profitability, though from a very low base.
• The company is still profitable on a trailing basis, with a P/E of 66.92 rather than losses.
• Current price ₹72.49 is near the upper end of its 52-week range (₹39.61-₹77.50), showing recent market interest.
• Small micro-cap size (market cap ₹44 Cr) means even a modest absolute profit improvement can create large percentage moves.

Concerns

• Sales collapsed by 86.69%, and latest quarter revenue is only ₹1 Cr, indicating a dramatically shrunk business.
• Valuation is demanding: P/E of 66.92 on negligible earnings, with latest quarter net profit rounding to ₹0 Cr, leaves no margin of safety.
• ROCE of 4.38% is below a reasonable return on capital; zero dividend yield and a trading/distribution business suggest weak pricing power and no moat.
• Critical data is missing—book value, debt/equity, ROE, and promoter holding are all N/A—so the balance sheet and insider alignment cannot be assessed.

AI Analysis

Let's start with the one number that matters: latest quarter sales ₹1 Cr. This is not a business; it's a thin shell. Sales fell 86.69%, yet reported profit growth is 107.69%—in the micro-cap world that's a base effect, not momentum. At ₹72.49, market cap ₹44 Cr, P/E 66.92. You are paying 67 times earnings for a distributor whose net profit in latest quarter rounds to zero. Graham would insist on margin of safety; here the earnings line is so small that a single lost customer or delayed payment destroys valuation. ROCE 4.38% tells me the company earns less on capital than a fixed deposit. No book value, no debt/equity, no promoter holding—unacceptable. How can I compute intrinsic value without equity or debt? I cannot. Piotroski F-Score 6/9 is mildly reassuring, but F-Score measures short-term financial health, not enduring competitive advantage. PEG 0.62 appears cheap, but PEG with a P/E of 66.92 and unstable profits is an illusion. Trading and distribution rarely creates moats; this is a pass-through business with pricing power determined by others. Dividend yield zero—owners receive nothing while waiting. The 52-week range ₹39.61-₹77.50 and current price near high may suggest speculative momentum, not fundamental value. In Buffett's words, price is what you pay, value is what you get. Here I cannot determine value with confidence. This is a possible turnaround candidate—the positive profit growth and F-Score offer a glimmer—but I need three to five years of consistent sales, margins, and balance-sheet data before I would put a rupee in. For now, it fails my circle of competence and my margin-of-safety test.

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