Retaggio Indust. (544391)

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

Key Financials

Strengths

• Revenue growth of 236.43% and profit growth of 341.98% show exceptional recent momentum.
• P/E of 11.15 is modest, offering a reasonable earnings multiple if growth is sustainable.
• ROCE of 12.60% indicates acceptable capital efficiency.
• Piotroski F-Score of 7/9 suggests improving fundamentals across profitability, leverage, and efficiency.
• Latest quarter net profit of ₹4 Cr on ₹30 Cr sales implies a 13% net margin, solid for the gems and jewellery sector.

Concerns

• No promoter holding, book value, or debt/equity data — critical gaps for assessing governance and balance-sheet risk.
• PEG of 0.04 is unrealistically low; the market is pricing in either a sharp growth slowdown or high perceived risk.
• Zero dividend yield means shareholders rely entirely on stock-price appreciation and management's capital allocation.
• Extremely high growth rates in a cyclical industry often reverse; the 342% profit jump may not be repeatable.

AI Analysis

Let me start with what I like: Retaggio Indust. is growing like a weed. Sales up 236% and profit up 342% is remarkable for any business, let alone one in the cyclical gems and jewellery trade. At ₹37.24, the market cap is just ₹58 crore, and the P/E is 11.15. Pair that with a 12.60% ROCE and a Piotroski F-Score of 7/9, and the company looks financially healthy on the surface. The latest quarter shows ₹30 crore sales and ₹4 crore net profit — a 13% net margin, which is respectable for this industry. But I would be failing as a Graham investor if I ignored what is missing. There is no book value, no debt-to-equity figure, no promoter holding, and no 52-week range. How can I judge the margin of safety without knowing the asset base or who is running the show? The PEG ratio of 0.04 is absurdly low — that is not a sign of a bargain; it is a warning that the market does not trust this growth rate to continue. A 342% profit jump from a small base is often a one-time event, not an enduring franchise. This is a fast grower, but it is not a moat-strong compounder yet. The jewellery business requires working capital, inventory management, and trust. Without clear financial statements and promoter transparency, I cannot calculate intrinsic value with any confidence. I would want to see this growth persist for several more quarters, with real cash flow, before putting a commensurate value on it. The price may be cheap, but cheap can become cheaper. In investing, you pay with certainty; here, I do not yet have enough certainty to pay at all.

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