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

AI Analysis

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

I am wary when a fine balance sheet meets a demanding price. RPG LifeScience shows quality marks: ROE 53.41%, ROCE 32.80%, and debt/equity of just 0.03. That tells me it earns high returns on capital without leaning on borrowings, and promoter holding of 72.95% aligns management with shareholders. Sales grew 14.76%, profit grew 16.28%, and the five-year revenue CAGR is 12.72%—respectable, but not hypergrowth. The latest quarter had sales of ₹180 Cr and net profit of ₹22 Cr, implying a roughly 12% net margin. That is healthy, though without product-level detail I cannot judge the durability of any moat. The trouble is valuation. At ₹2,782.30, market cap is ₹4,602 Cr, P/E is 38.46, P/B is 7.60, and book value is ₹366.01. I am paying a rich price for mid-teens growth. A PEG of 6.96 is eye-watering; Graham would demand a margin of safety, not pay up for hope. Dividend yield of 0.86% offers little support. FairStock Score of 25/100 (RISKY) and Piotroski F-Score of 4/9 warn that financial momentum is not strong. The 52-week range of ₹1,733.00–₹3,130.50 shows volatility. My verdict: a financially strong, low-debt, high-ROE pharma business, but not a bargain. The moat is not proven by these figures; high ROCE may reflect efficient operations or a niche. The stock looks like a stalwart priced like a fast grower. I would wait for either a price correction or clearer growth acceleration. At this valuation, the risk of permanent loss is higher than I like.

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