Rajesh Power (544291)

FairStock Score: 65/100 — STEADY

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

Key Financials

Strengths

• ROCE of 54.71% reflects exceptional returns on capital employed, a key quality signal.
• Revenue and profit growth of 103.74% and 119.76% respectively, with a PEG of 0.12, suggest cheapness relative to recent growth.
• Piotroski F-score of 7/9 points to healthy fundamentals and limited financial stress.
• Latest quarter sales of ₹638 Cr and net profit of ₹58 Cr demonstrate continued operational momentum.
• P/E of 13.81 is moderate for a business expanding at triple-digit rates.

Concerns

• Dividend yield of 0.11% means shareholder returns depend entirely on future growth and capital gains.
• Triple-digit growth rates are rarely sustainable; a sharp slowdown would make the P/E look less attractive.
• Missing data on book value, debt/equity, and promoter holding limits balance-sheet and governance assessment.
• Multi-utility businesses are regulated and capital-intensive; today's high ROCE may face pressure over time.

AI Analysis

At ₹902, Rajesh Power capitalizes at ₹1,625 Cr. A P/E of 13.81 is not demanding for a business growing sales 103.74% and profits 119.76%. The PEG ratio of 0.12 screams value—if the growth is durable. But Graham taught me to treat projections with suspicion; a 100% growth rate is rarely sustainable. Still, the current scorecard is impressive: ROCE of 54.71% indicates a highly productive capital base, and a Piotroski F-score of 7/9 suggests solid financial health, not distress. The latest quarter—₹638 Cr sales and ₹58 Cr net profit—shows momentum is continuing. That said, the 0.11% dividend yield tells me shareholders are not receiving cash; they are betting on reinvestment. With no book value, debt/equity, or promoter holding data, I cannot fully assess the margin of safety. Multi-utilities can be beaten down by regulation, and extraordinary growth can normalize. Mr. Market always prices in perfection. I would need to understand whether this growth is from new projects, acquisitions, or a one-time tailwind. At a P/E of 13.81 and with profit growth at 119.76%, even a partial slowdown leaves a reasonable valuation. But if growth collapses to single digits, the multiple gives little protection. The FairStock score of 65/100, labelled 'Steady,' is fair but not enthusiastic. I would want to see several more quarters of high returns and conservative accounting before committing serious capital. As Buffett would say, it is better to be approximately right than precisely wrong. This could be a wonderful compounder, but I need more data.

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