Richa Info (RICHA)

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

Key Financials

Strengths

• Low P/E of 8.69 with ₹90 Cr market cap and a strong latest quarter of ₹86 Cr sales and ₹6 Cr profit.
• Exceptional recent growth: sales up 706.85% and profit up 1000%.
• Piotroski F-Score of 7/9 indicates improving financial health.
• ROCE of 12.10% shows reasonable returns on capital employed.

Concerns

• Promoter holding is only 23.33%, low for a small cap and a governance concern.
• Zero dividend yield means no income while waiting for growth to prove itself.
• Explosive growth figures are likely unsustainable; PEG of 0.01 is misleading.
• Stock trades near its 52-week low and lacks full book value/debt data, limiting margin-of-safety analysis.

AI Analysis

At ₹59.20, Richa Info is a tiny ₹90 crore market cap, trading at just 8.69 times earnings. On the surface that looks cheap, but cheapness must be judged against durable earning power and a moat. The latest quarter shows ₹86 crore in sales and ₹6 crore in net profit, with reported sales growth of 706.85% and profit growth of 1000%. Those numbers are eye-popping, but I have learned to be suspicious of such explosive growth from a small hardware business. A single large order or an easy base effect can distort the picture. The 52-week range of ₹56.80 to ₹95.00 tells me the market itself is uncertain about this company. The Piotroski F-Score of 7/9 is encouraging, and ROCE of 12.10% is respectable. But promoter holding of only 23.33% is a serious concern; when insiders own so little, minority shareholders are not fully aligned. There is zero dividend yield, so I am not being paid to wait. With book value and debt/equity not disclosed, I cannot calculate a proper Graham-style margin of safety. The P/E of 8.69 looks cheap, but the PEG of 0.01 is nonsense because 1000% profit growth cannot persist. If the current quarter's profit of ₹6 crore were annualised, the stock would seem very cheap, but I do not assume annualisation for a business with such volatile revenue. I need multiple years of evidence before trusting this earning power. This is a fast grower, but fast growth in commodity-like hardware often invites competition and margin pressure. I would stay on the sidelines until I see durable earnings, better capital allocation, and higher insider ownership.

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