RPG LifeScience. (RPGLIFE)

FairStock Score: 25/100 — RISKY

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

Key Financials

Strengths

• High return ratios: ROE of 53.41% and ROCE of 32.80% indicate efficient use of capital.
• Strong promoter holding of 72.95% aligns management interests with minority shareholders.
• Sales are still positive at 4.24% growth and the latest quarter remains profitable.
• A modest dividend yield of 1.07% provides some shareholder return even in a weak phase.

Concerns

• Profit growth is sharply negative at -18.32%, while sales growth is just 4.24%.
• Valuation is stretched: P/E of 29.51, P/B of 8.72, and PEG of 6.96 offer no margin of safety.
• Piotroski F-Score of 4/9 and FairStock Score of 18/100 point to deteriorating financial health.
• The price is 35% below the 52-week high but still expensive relative to current earnings power.

AI Analysis

At ₹2,011.40, RPG LifeScience wears a market cap of ₹3,100 crore. The first numbers that jump out are a 53.41% ROE and a 32.80% ROCE. In Graham's language, those are unusually high returns on capital—often a sign of a good business. But my job is not to fall in love with ratios; it is to estimate future earnings. Sales grew only 4.24%, while profit fell 18.32%. That combination tells me the business is not compounding. The latest quarter's ₹180 crore sales and ₹22 crore net profit are respectable on an annualised basis, but the trend is against the shareholder. At a P/E of 29.51 and a PEG of 6.96, the market is paying a premium for no growth. Graham would call that speculation. Book value is just ₹230.74; at ₹2,011.40 I am paying 8.72 times book for a company whose earnings are declining. The Piotroski score of 4/9 reinforces the weak fundamental trend, and FairStock's 18/100 risk score matches my caution. On the positive side, promoter holding of 72.95% provides alignment, and the dividend yield of 1.07% gives a small return while I wait. The D/E is not shown, so I cannot give unqualified praise to the balance sheet. In a pharmaceutical market, moats can exist, but these figures do not prove a durable moat to me. This is a slow grower with high historical returns and a demanding valuation. I would need to see sales growth accelerate and profits turn positive before I deploy capital. Price is what you pay; value is what you get. Here, the value is not visible.

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