Radiant Cash (RADIANTCMS)
Slow GrowerScore breakdown: P/E: 3/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 1/1
Key Financials
| Current Price | ₹36.08 |
| Market Cap | ₹385 Cr |
| P/E Ratio | 11.95 |
| ROCE | 26.25% |
| ROE | 15.64% |
| Dividend Yield | 6.8% |
| Profit Growth | -13% |
| Debt/Equity | 0.71 |
| Sales Growth | 8.1% |
| Promoter Holding | 56.92% |
| 52-Week Range | ₹32.33 — ₹57.49 |
| Sector | Commercial Services & Supplies |
| Book Value | ₹25.96 |
Strengths
- Low P/E of 9.97 with a high dividend yield of 6.81% offers valuation and income support.
- ROCE of 26.25% shows efficient use of capital.
- Debt-to-equity of 0.57 is moderate and manageable.
- Promoter holding of 56.92% aligns management interests with minority shareholders.
- Latest quarter net profit of ₹10 crore on sales of ₹103 crore indicates a decent margin.
Concerns
- Sales declined 2.74% and profit declined 17.96% over the year, showing negative momentum.
- Piotroski F-score of 3/9 signals weak financial health and possible deterioration.
- P/B of 1.75 means paying 75% above book value while earnings are contracting.
- High dividend yield may not be sustainable if the profit decline continues.
AI Analysis
At ₹42.08, Radiant Cash trades at under 10 times earnings and offers a 6.81% dividend yield. That looks like a Graham bargain at first glance, but I must look deeper. Return on equity is 15.64% and return on capital employed is 26.25%, which are respectable. Debt-to-equity at 0.57 is manageable. Yet the last year tells a less pleasant story: sales fell 2.74% and profits fell nearly 18%. In the latest quarter, sales were ₹103 crore and net profit was just ₹10 crore. The Piotroski F-score of 3 out of 9 is a red flag. This is not a financially strengthening business. When quality is questionable, a low P/E can become a value trap. Book value is ₹24.02 per share, so at 1.75 times book, I am paying a significant premium to a business whose earnings are contracting. Promoter holding of 56.92% gives some comfort, but it does not replace a durable competitive advantage. I need to know why profits are falling. Is it competition, input costs, or lost customers? This is a diversified commercial services business, but I do not see an obvious moat from these numbers. The dividend yield is attractive, but if earnings keep falling, that dividend could be at risk. For a value investor, a cheap stock is not enough; I want a good business at a fair price. Radiant Cash may become interesting, but today the evidence is mixed and the weak F-score tells me to wait.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer