Raymond Lifestyl (RAYMONDLSL)

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

Key Financials

Strengths

• Trades at a steep discount to book value: P/B 0.50 versus book value of ₹1,611.83.
• Low leverage with Debt/Equity of 0.26.
• Piotroski F-Score of 7/9 indicates decent financial health signals.
• Promoter holding of 58.22% aligns promoter interests with minority shareholders.
• Reported profit growth of 27.91% shows some earnings momentum.

Concerns

• Very low profitability: ROE 0.51%, ROCE 2.87%, and latest quarterly net margin is thin at around 2.3%.
• Earnings valuation is expensive: P/E of 55.17 and PEG of 3.31, despite only 5.39% sales growth.
• Zero dividend yield means no cash return to shareholders while waiting for value to emerge.
• FairStock Score of 10/100 labels the stock as risky.
• Slow revenue growth of 5.39% makes the high profit growth difficult to sustain.

AI Analysis

At first glance, the price-to-book of 0.50 catches my eye. Mr. Market is offering me ₹1,611.83 of book value for ₹801.40. But Graham taught us that a bargain must also have earning power. Here the earning power is sadly weak: return on equity is just 0.51%, and return on capital employed is 2.87%. The latest quarter's ₹43 crore profit on ₹1,849 crore sales is a thin margin. So this is not a wonderful business hiding at a discount; it is a business whose assets are barely earning anything. The balance sheet is acceptable—debt/equity of 0.26 and a Piotroski F-score of 7 suggest no immediate distress. Promoters own 58.22%, so interests are aligned. Sales growth of 5.39% is pedestrian, and while profit growth is 27.91%, the 55.17 P/E and 3.31 PEG tell me the market is already paying up for that improvement. With zero dividend yield, I receive no income while waiting. The FairStock Score of 10/100 flags the risk loudly. Would I buy? Only as a possible asset play, not as a compounding machine. The quantum of book value gives some protection, but if the company cannot earn a respectable return on that book, the discount can persist or widen. I need evidence that management can unlock the value of those assets, or materially improve returns.

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