Rapid Multimodal (544237)

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

Key Financials

Strengths

• ROCE of 29.59% shows strong capital efficiency in the logistics operations
• Sales growth of 59.15% indicates robust demand and top-line traction
• Latest quarter revenue of ₹70 Cr versus ₹54 Cr market cap implies a low revenue multiple if the run-rate holds
• PEG of 0.63 suggests the market is pricing in continued high growth, though profit quality is weak

Concerns

• Net profit of ₹0 Cr in the latest quarter; profit growth already down 63.28%
• P/E of 37.07 on a tiny earnings base leaves no margin of safety
• Piotroski F-score of 4/9 indicates deteriorating fundamentals
• Missing data on promoter holding, book value, and debt/equity makes balance sheet risk unquantifiable

AI Analysis

When I look at Rapid Multimodal, I see a logistics business growing revenues but not making money at the bottom line. The top line jumped 59.15%, yet profits collapsed 63.28%, and the latest quarter shows net profit of ₹0 Cr on sales of ₹70 Cr. That is a yellow flag. In Graham's world, growth in revenue means little if earnings disappear. The P/E of 37.07 is meaningless for an investor when the 'E' is so thin. At ₹142 and a market cap of just ₹54 Cr, you are paying a premium for a small-cap logistics operator. The ROCE of 29.59% suggests the underlying operations generate decent returns on capital employed, but with debt/equity and book value unavailable, I cannot assess the balance sheet properly. The Piotroski F-score of 4 out of 9 is poor: it hints at deteriorating fundamentals. I also receive no dividend, so patience is not rewarded. Some may argue the PEG of 0.63 makes the stock cheap if sales growth continues at this pace, but I am skeptical; sales growth without profit growth is not the kind of compounding I seek. This looks like a cyclical logistics business in a phase where capacity expansion or competitive pricing is crushing margins. As value investors, we depend on numbers; here, too many are missing. I need to know promoter holding, book value, and debt levels. Without that, I cannot apply my normal margin of safety. This is not a business I would own today; I would wait for margins to stabilise and profits to return before paying a 37-times earnings multiple.

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