Rajeshwari Cans (543285)

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

Key Financials

Strengths

• Profit growth of 23.58% is comfortably ahead of sales growth of 14.10%, suggesting improving margins or operating leverage.
• ROCE of 19.70% indicates respectable capital efficiency.
• Piotroski F-Score of 7/9 points to a generally sound financial position.
• P/E of 11.12 and PEG of 0.59 make the stock look reasonably valued if trailing earnings hold.
• Double-digit sales growth of 14.10% shows the business is expanding.

Concerns

• Latest quarter net profit is only ₹1 Cr on ₹22 Cr of sales; annualizing that would make the headline P/E look far less cheap.
• Zero dividend yield means shareholders get no income cushion and depend entirely on capital appreciation.
• Stock is at its 52-week high of ₹165.65 after trading at ₹15.42 within the same band, implying a large run-up and possible momentum risk.
• Critical disclosures are missing: promoter holding, book value, ROE, and debt/equity are all N/A, reducing conviction.

AI Analysis

At ₹165.65, Rajeshwari Cans carries a market capitalization of ₹96 Cr. A trailing P/E of 11.12 and a PEG of 0.59 would normally catch the eye of any value investor. Profit growth of 23.58% has outpaced sales growth of 14.10%, which often indicates pricing power or operating efficiency. The return on capital employed of 19.70% is respectable, and the Piotroski F-Score of 7/9 gives me some confidence that the underlying financial position is not deteriorating. Having said that, Graham taught me to demand a margin of safety, and here the margin is hard to measure because key variables are missing. I do not know book value, return on equity, debt-to-equity, or promoter holding. Without those, I cannot tell whether promoters are aligned with minority shareholders or whether the capital structure is safe. The latest quarter is also sobering: ₹22 Cr of sales produced only ₹1 Cr of net profit, a thin margin. If that quarterly figure were annualized, the headline P/E would look considerably less cheap than 11.12. There is no dividend, so the investor is wholly dependent on future growth and market sentiment. The stock sits at the top of its 52-week range, with the low at ₹15.42; that kind of rise often turns value investors into momentum victims. Packaging may be a steady, repeat-order industry, but I cannot build a durable moat on these numbers. A true Graham approach would wait until the scorecard is complete. In short, this appears to be a fast-growing small-cap at an optically reasonable multiple, but only if the earnings are sustainable and the missing disclosures are reassuring. I would need deeper fieldwork before writing a cheque.

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