Rossell India (ROSSELLIND)

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

Key Financials

Strengths

• Price-to-book of 1.05 with book value at ₹53.51 provides asset downside support
• Low P/E of 10.20 offers apparent value if earnings stabilize
• Strong promoter holding of 74.80% aligns owner interests
• Sales growth of 35.98% shows top-line expansion
• ROCE of 10.47% is above ROE, suggesting operating returns exceed net returns

Concerns

• Profit growth declined 27.23% and latest quarter margin is thin: ₹4 crore net profit on ₹85 crore sales
• Piotroski F-score of 4/9 points to weak financial health
• ROE of 8.43% is modest for a commodity tea and coffee business
• Debt-to-equity is not available and FairStock score is insufficient, leaving balance-sheet opacity

AI Analysis

Rossell India is the kind of business I would approach with caution. At ₹56.17, I am paying 10.2 times earnings and about 1.05 times book value. That looks cheap, but cheapness is not enough; I need a good business. Tea and coffee is a commodity, and I have not been given any evidence of a pricing edge or a low-cost moat. The numbers reflect that. Sales grew nearly 36 percent, but profit fell by 27 percent. In the latest quarter, net profit of ₹4 crore on sales of ₹85 crore means margins are painfully thin. That is not a franchise; it is a price taker. Ben Graham taught me to value assets, and the book value of ₹53.51 provides some floor. With promoter holding at 74.8 percent, owner interests are aligned, which I like. Yet the return on equity is only 8.43 percent, and ROCE is 10.47 percent — hardly spectacular economics. The Piotroski F-score of 4 out of 9 is a red flag; it tells me financial health is not improving. The PEG ratio of 0.28 is misleading because profit is falling; a low PEG only matters when growth is real. And with debt-to-equity not available and the FairStock score citing insufficient data, I cannot fully trust the balance sheet. I would not call this a fast grower or a stalwart. Tea prices are cyclical, and Rossell's earnings will swing with them. At book value, there is some downside support, but I'd want a wider margin of safety and better proof that margins can recover before investing. Let the market prove it to me.

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