Rossari Biotech (ROSSARI)

FairStock Score: 34/100 — RISKY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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