Resgen (543805)

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

Key Financials

Strengths

• Sales growth of 47.41% shows a rapidly expanding revenue base.
• P/E of 15.02 is not demanding; PEG of 0.57 hints at value if earnings growth resumes.
• ROCE of 19.68% indicates decent capital efficiency.
• Piotroski F-Score of 7/9 suggests relatively sound financial health on available metrics.
• Latest quarter is profitable with ₹38 Cr sales and ₹4 Cr net profit.

Concerns

• Profit growth of just 4.95% versus 47.41% sales growth implies margin compression or cyclicality, not pricing power.
• Critical data missing: no book value, ROE, debt/equity, or promoter holding, so financial risk cannot be properly assessed.
• Zero dividend yield means no income support for shareholders.
• Refining and marketing is inherently cyclical; with a ₹176 Cr market cap, the company is vulnerable to industry downcycles.

AI Analysis

Let me start with what I know. This is a tiny ₹176 crore refining and marketing company. A 47.41% jump in sales catches my eye, but a value investor must ask: where is the owner's earnings? Profit rose only 4.95%, so the extra revenue is not reaching shareholders. Latest quarter sales of ₹38 Cr and net profit of ₹4 Cr gives roughly a 10.5% margin, but the overall profit growth lag tells me this may be a cyclical operation selling commodities without durable pricing power. The P/E of 15.02 is reasonable only if we are at the beginning of a favourable cycle. But I have no book value, no debt/equity, no promoter holding, and no ROE. That is not enough for a margin of safety. ROCE of 19.68% is respectable, and the Piotroski F-Score of 7/9 suggests passable financial health so far. The PEG of 0.57 looks optically cheap, but the reported profit growth of 4.95% does not support such optimism. The stock trades at ₹82.20, midway in its ₹49.50-₹99.01 range, so it is not a beaten-down Graham bargain. There is no dividend, so I earn nothing while I wait. As Graham would say, price is what you pay, value is what you get. Here I can see the price, but the value is obscured by missing data. I would keep this on a watch list, not act, until I can study full financials and see at least two more years of profit margins, cash flow, and management behaviour. This looks like a cyclical micro-cap with one strong sales year; I chase earnings with a durable edge, not revenue headlines alone.

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