Rudra Gas (544121)

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

Key Financials

Strengths

• Low P/E of 7.56 and PEG of 0.42 suggest attractive valuation relative to sales growth.
• Sales grew 26.38%, and latest quarter revenue is ₹50 Cr, showing solid momentum.
• ROCE at 23.20% indicates efficient use of capital in a capital-intensive industry.
• Piotroski F-score of 7/9 points to sound financial health and low bankruptcy risk.

Concerns

• Profit growth of 9.58% trails sales growth of 26.38%, implying margin compression.
• Zero dividend yield means shareholders depend entirely on future capital gains.
• Critical data is undisclosed: Book Value, ROE, Debt/Equity, and Promoter Holding are all N/A.
• Civil construction is cyclical; today's low P/E may reflect peak earnings rather than durable quality.

AI Analysis

Let me start with what I admire: this is a cheap-looking business. At ₹160.90, Rudra Gas trades at only 7.56 times earnings, and with sales growing 26.38%, the PEG ratio is just 0.42. A company that compounds at that pace and still trades at single-digit earnings deserves a second look. ROCE of 23.20% also tells me capital is being deployed reasonably well. The Piotroski score of 7 out of 9 adds some reassurance on financial health and accounting discipline. But I need to be honest: Graham would demand better information. I have no book value, no ROE, no debt-equity ratio, and no promoter holding data. That is precisely the kind of fog that hides weak balance sheets. Also, profit is growing at only 9.58%, much slower than sales at 26.38%. That means management is spending more rupees to earn fewer incremental rupees. The latest quarterly numbers confirm the squeeze: ₹50 Cr of sales produced only ₹3 Cr of profit, a roughly 6% net margin. Construction is a cyclical, competitive business with no durable moat. The stock sits at its 52-week high of ₹160.90, so the market has already recognized much of the good news. With zero dividend yield, all my return must come from future growth; the price must deliver. I would treat this as a speculative growth-in-a-cyclical situation, not a foundational holding. If the order book is strong and margins stabilize, the low P/E could be a bargain. But I want more transparency and a wider margin of safety.

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