ROX Hi-Tech (ROXHITECH)

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

Key Financials

Strengths

• Promoter holding of 58.76% aligns owner interests with minority shareholders.
• P/E of 2.61 gives an implied earnings yield of roughly 38%, if current earnings are sustainable.
• Latest quarter shows real activity with sales of ₹105 Cr and net profit of ₹10 Cr.
• Market cap of ₹77 Cr is below the latest quarter's sales, reflecting deeply pessimistic pricing.

Concerns

• Piotroski F-Score of 2/9 is a serious red flag on financial health and earnings quality.
• ROCE of 0.00%, with ROE, book value, and debt/equity all unavailable, leaves the balance sheet and capital efficiency unverifiable.
• Sales growth and profit growth are both 0.00%, and dividend yield is 0.00%, so there is no compounding or cash return while waiting.
• A P/E of 2.61 can be a value trap if the current earnings level is not durable.

AI Analysis

I have learned that a cheap price can hide an expensive mistake. Here we have ROX Hi-Tech at ₹35.75 with a market cap of only ₹77 crore on a P/E of 2.61. The earnings yield is roughly 38%, which would make Benjamin Graham sit upright. But the lesson is to look under the rock. Piotroski F-Score of 2/9 is a loud warning: this is not a financially sound business by the metrics used. ROCE is 0.00%, and since I am not given ROE, book value, or debt/equity, I cannot judge the balance sheet or the quality of earnings. A 0.00% dividend yield means I get no cash return while waiting. Sales growth and profit growth are both 0.00%, so this is not a growing franchise. The company still reported latest quarter sales of ₹105 crore and a net profit of ₹10 crore. That is real activity, and the market cap being less than one quarter's sales is interesting. But a Piotroski score of 2/9 tells me that the operating performance is fragile. Promoter holding of 58.76% is a positive sign — at least the owners have skin in the game. Still, I would call this a possible turnaround or special situation, not a business I can confidently hold. In Graham's language, I want a margin of safety in a sound enterprise; a P/E below 3 may be a statistical bargain, but it can also be a value trap if the earnings erode. I need at least a few quarters of evidence, plus a clean balance sheet, before I use my own money. The price is close to the lower end of its 52-week range, but a falling price is not in itself value.

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