Rossari Biotech (ROSSARI)
Slow GrowerFairStock Score: 34/100 — RISKY
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹503 |
| Market Cap | ₹2,786.32 Cr |
| P/E Ratio | 18.49 |
| ROCE | 15.8% |
| ROE | 11.91% |
| Dividend Yield | 0.1% |
| Profit Growth | 4.5% |
| Debt/Equity | 0.33 |
| Sales Growth | 28.2% |
| Promoter Holding | 68.16% |
| 52-Week Range | ₹375 — ₹690.3 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹240.75 |
Strengths
- Sales growth of 13.45% shows end-market demand, with latest quarter sales at ₹582 Cr.
- Debt/Equity of 0.28 reflects a conservative balance sheet.
- Promoter holding of 68.16% aligns management interests with shareholders.
- Piotroski F-Score of 7/9 indicates decent financial health.
- ROCE of 15.80% and ROE of 11.91% are respectable, if not exceptional.
Concerns
- Profit growth of 3.38% lags far behind sales growth of 13.45%, suggesting margin compression.
- P/E of 19.96 and PEG of 2.37 look expensive for such low profit growth.
- Dividend yield of 0.10% offers negligible income support.
- FairStock Score of 33/100 flags the stock as risky at current levels.
AI Analysis
Rossari Biotech is a specialty chemicals business, but looking at these numbers, I don't feel the urge to act. A 13.45% sales growth looks fine, yet profits rose only 3.38%. That divergence tells me the business is working harder and earning less per rupee of revenue—not a hallmark of pricing power. In the latest quarter, ₹582 Cr of sales produced ₹33 Cr of net profit, roughly a 5.7% margin; nothing special in a competitive chemical industry. Return on equity is 11.91% and ROCE is 15.80%, respectable but not outstanding. At a P/B of 2.78, you are paying a premium for moderate returns. The balance sheet is okay—debt/equity of 0.28—so there is no distress, and promoter holding at 68.16% aligns interests. The Piotroski F-Score of 7/9 suggests decent financial health, but a score is not a story. The problem is valuation. At ₹511.45, the stock trades at 19.96 times earnings and a PEG ratio of 2.37. A business growing profits at just over 3% does not deserve a 20-times multiple unless something is about to change dramatically. The dividend yield is 0.10%, so you are not paid to wait. The FairStock Score calls it risky at 33/100; I agree. In Graham's language, the margin of safety is thin. You are paying a full price for mediocre profit growth while sales growth has yet to translate into earnings. I would keep it on the watchlist and wait for either a better price or proof that margins can expand. Time is the friend of a wonderful business; for Rossari, these numbers do not make it wonderful.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer