Rexpro Enter. (REXPRO)

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

Key Financials

Strengths

• Low headline valuation: P/E of 9.23 and market cap of ₹55 Cr, so market expectations are modest.
• ROCE of 28.34% suggests decent capital efficiency, if no hidden leverage.
• Promoter holding of 66.98% aligns promoter and public shareholder interests.
• Latest quarter remains profitable with ₹2 Cr net profit on ₹45 Cr sales, giving a base to work from.

Concerns

• Profit growth -51.81% despite only -1.92% sales decline points to severe margin compression.
• Piotroski F-Score of 3/9 signals weak financial health and possible operational stress.
• No dividend means investors get no cash return while waiting for recovery.
• Lack of book value, debt-to-equity, and ROE data prevents verification of leverage and true return on capital.

AI Analysis

At ₹44.85, Rexpro Enter. carries a market cap of just ₹55 crore and sells at 9.23 times earnings. A low price-to-earnings ratio is always interesting, but I have learned that a cheap multiple means little if the earnings behind it are shrinking. Sales declined only 1.92%, yet profits fell 51.81%. The latest quarter shows ₹45 crore in sales and only ₹2 crore in net profit—so margins are thin and under pressure. The Piotroski F-Score of 3 out of 9 is a serious warning flag; it suggests deteriorating financial health, not the kind of clean balance sheet Graham demanded. The reported ROCE of 28.34% looks attractive, but without book value, debt-to-equity, or return on equity, I cannot judge whether this return is real, sustainable, or leveraged. Promoter holding of 66.98% is a positive—it aligns owners with public shareholders—yet it does not by itself protect against a weak business. There is no dividend, so any return depends entirely on a turnaround in operations. The 52-week range of ₹37.70 to ₹52.25 shows the stock is not in a clear uptrend. This is a possible turnaround situation, not a proven compounder. I would need to see sales stabilize, profit margins recover, and the F-Score improve before committing capital. At the right price, bad news can be an opportunity—but the evidence right now is not sufficient to declare a margin of safety.

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