Rappid Valves (RAPPID)

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

Key Financials

Strengths

• Strong growth: sales up 46.89% and profit up 41.42%, with latest quarter revenue of ₹29 Cr and net profit of ₹3 Cr.
• High ROCE of 24.31% indicates efficient use of capital.
• Reasonable valuation: P/E of 19.04 and PEG of 0.43 suggest growth is not overpaid for.
• Promoter holding of 51.69% aligns management with minority shareholders.
• Piotroski F-Score of 7/9 points to sound fundamental health.

Concerns

• Incomplete financial data: no book value, ROE, or debt-equity disclosed, leaving balance sheet risk unclear.
• No dividend, so returns depend entirely on capital appreciation.
• Profit growth of 41.42% trails sales growth of 46.89%, indicating slight margin pressure.
• Wide 52-week range of ₹207 to ₹376 highlights volatility and small-cap fragility.

AI Analysis

At ₹292, Rappid Valves is a small-cap industrial play with a market cap of just ₹134 crore. I always ask: what am I buying? A business compounding sales at 46.89% and profits at 41.42%. The latest quarter shows ₹29 crore in sales and ₹3 crore net profit, which is roughly a 10% net margin. ROCE of 24.31% is impressive; it tells me capital is being put to work efficiently. The P/E of 19.04 is not demanding for this kind of growth, and a PEG of 0.43 suggests the market is not fully pricing in the growth rate. But Graham would remind me that price is what you pay, value is what you get. Promoter holding at 51.69% aligns interests with minority shareholders. The Piotroski F-score of 7/9 also points to decent financial health. Moat? Valves can enjoy customer stickiness through validation and switching costs, but I need more evidence. I cannot see book value, ROE, or debt-equity, so my margin of safety is thinner than I like. The 52-week range of ₹207 to ₹376 shows this is not a calm, stable compounder yet. No dividend means I must rely entirely on capital appreciation. Profit growth is slightly below sales growth, so margins are not expanding much. I would watch whether ROCE remains above 20% as the business scales. At 19 times earnings, the stock is reasonably priced if growth continues, but small-caps can stumble. This is a fast grower, not a stalwart. I would keep a small position and track quarterly results carefully.

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