Ritco Logistics (RITCO)
CyclicalFairStock Score: 35/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹295.6 |
| Market Cap | ₹841.59 Cr |
| P/E Ratio | 23.48 |
| ROCE | 14.74% |
| ROE | 17.42% |
| Dividend Yield | 0% |
| Profit Growth | -38.7% |
| Debt/Equity | 1.32 |
| Sales Growth | 3.5% |
| Promoter Holding | 62.68% |
| 52-Week Range | ₹167.1 — ₹330.5 |
| Sector | Transport Services |
| Book Value | ₹127.64 |
Strengths
- Sales growth of 25.46% shows strong demand for its services
- Promoter holding of 62.68% ensures interest alignment
- ROE of 17.42% and ROCE of 14.74% are respectable
- P/E of 14.81 is not excessive on a standalone basis
Concerns
- Profit growth of -2.03% despite 25% sales growth signals margin pressure
- Latest quarter net margin is only ~2.5% (₹10 Cr profit on ₹393 Cr sales)
- Piotroski F-Score of 4/9 suggests weak financial health
- Debt-to-equity of 1.08 and zero dividend yield limit downside protection
AI Analysis
I approach every stock as a partial ownership of a business, not a ticker symbol. Ritco Logistics is growing its top line quickly — sales are up 25.46% — but profits fell 2.03%. That immediately raises a red flag. A business that cannot convert higher sales into higher earnings has no pricing power or is facing rising costs. In the latest quarter, it booked ₹393 Cr of sales but only ₹10 Cr of net profit — a thin margin of about 2.5%. That tells me this is a low-moat, intensely competitive logistics operator. The P/E of 14.81 looks cheap, but with flat earnings, 'cheap' is an illusion. I pay for earnings growth, and I don't see it here. The ROE of 17.42% is respectable, but it comes with a debt-to-equity ratio of 1.08. Leverage can flatter returns. The Piotroski F-Score of 4 out of 9 warns of deteriorating financial health. With no dividend, the shareholder gets no cash while waiting. Book value is ₹111.48 against a price of ₹214.90, so I'm paying almost twice book. The promoter holding of 62.68% does align interests, and a PEG ratio of 0.58 seems attractive, but that PEG is based on sales growth, not actual profit growth. Graham would ask: where is the margin of safety? At this price, I don't see it. I'd rather wait for proof that margins expand and profits follow sales. Until then, Ritco is a cyclical logistics player, not a compounder.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer