Rajputana Bio. (RAJPUTANA)

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

Key Financials

Strengths

• High ROCE of 20.82% indicates efficient capital deployment
• Strong sales growth of 33.3% shows a rapidly expanding business
• Piotroski F-Score of 7/9 suggests solid financial health
• Promoter holding of 65.77% aligns management interests with minority shareholders
• PEG ratio of 0.80 implies reasonable valuation relative to growth

Concerns

• Profit growth of 23.17% lags sales growth of 33.3%, indicating margin pressure
• Zero dividend yield means all returns depend on capital appreciation
• No book value or debt-to-equity data available, leaving the balance sheet unverified
• Stock is near the top of its 52-week range (₹25.85-₹246), offering little margin of safety

AI Analysis

Rajputana Bio is an interesting puzzle. At ₹240, the market cap is ₹160 Cr, and the P/E sits at 22.47. That's not cheap, but the growth numbers make me pause. Sales grew 33.3% and profit grew 23.2%, giving a PEG of 0.80. For a business earning a ROCE of 20.82%, that's not an unreasonable price if the growth persists. The Piotroski score of 7/9 is a good sign of financial health, and promoter holding of 65.77% aligns ownership with minority shareholders. However, I am troubled by what I don't know. There is no book value, no debt-to-equity, no ROE. Buffett would never buy without knowing the balance sheet. The latest quarter shows sales of ₹59 Cr and net profit of ₹6 Cr, a 10% margin, yet the trailing P/E of 22.5 implies net profit of only ₹7.1 Cr. That seems inconsistent with that single quarter, and it raises questions about seasonality or one-time items. Also, profit growth of 23.2% is trailing sales growth of 33.3%—margin compression is real. Petrochemicals is a cyclical business; today's high prices often invite new capacity. The 52-week range of ₹25.85 to ₹246 tells me this stock has already had its run. Buying at ₹240 near the top of the range leaves little margin of safety. With zero dividend, all returns depend on future price appreciation. I would need to see profit growth catch up to sales growth, evidence of a durable cost advantage, and a full balance sheet before treating this as a Bellwether. For now, it's a fast grower with cyclical risk, and I'd want a lower entry price.

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