Rajshree Polypac (RPPL)

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

Key Financials

AI Analysis

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

At ₹16.26, Rajshree Polypac sells for less than 70% of its book value of ₹23.22. That is the first clue a Grahamite notices. The packaging industry is not a wonderful business; it is competitive, capital-consuming, and offers few durable moats. Still, this is a price that offers a margin of safety. The trailing P/E is 8.48, and even with a moderate debt-to-equity of 0.70, ROCE of 11.01% is respectable. Promoters hold 43.90%, so their interests are aligned with ours. What bothers me: sales fell 1.49%, and there is no dividend yield. A business that cannot generate cash to pay owners while trading below book needs scrutiny. The latest quarter shows ₹72 Cr sales and only ₹2 Cr net profit. If that quarterly profit is representative, the annualized earnings power is much lower than the P/E suggests. Profit growth of 31.74% looks encouraging, but with shrinking sales, this could be cost-cutting or tax effects, not underlying demand. The Piotroski F-score of 6/9 is decent, not spectacular. I would not call this a fast grower. It is closer to an asset play: you are paying ₹16.26 for ₹23.22 of book value, with a moderate earnings yield and a balance sheet that is not alarming. The low PEG of 0.27 is seductive, but in a cyclical packaging business, low P/E and low PEG can be value traps if earnings fall. I need to see stabilization in sales and better return on equity before treating it as a core holding. If the company maintains ROCE and converts book value into earnings, the discount should narrow. I would monitor quarterly sales, debt levels, and the promoter's actions. Patience, not excitement.

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