RPSG Ventures (RPSGVENT)

FairStock Score: 11/100 — RISKY

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

Key Financials

Strengths

• Promoter holding at 63.51% aligns management interests with minority shareholders.
• Quarterly sales of ₹2,756 Cr with 15.57% sales growth show a sizable, expanding franchise.
• Price-to-book of 1.05 indicates the market is close to the stated book value of ₹829.42.
• ROCE of 11.33% suggests underlying operating assets can generate some return before debt costs.

Concerns

• Latest quarter net profit of -₹136 Cr and profit growth of -203.72% reveal severe earnings deterioration.
• P/E of 0.00 means there are no positive earnings to support a traditional valuation.
• Debt/Equity of 1.35 with zero dividend and a low ROE of 5.31% creates a risky financial profile.
• Piotroski F-score of 4/9 and FairStock Score of 10/100 point to fundamental distress.

AI Analysis

At ₹870.80, RPSG Ventures seems to offer asset value at a price close to book—₹829.42—but I don't buy assets; I buy earning power. This BPO/KPO business is not earning. The latest quarter generated sales of ₹2,756 Cr but lost ₹136 Cr. A 15.57% sales growth looks pleasing at first glance, yet profit growth of -203.72% tells me the growth is consuming cash, not generating value. My preferred metric, return on equity, is only 5.31%, nowhere near the return I could get from owning a wonderful business. With a P/E of 0.00, there is no positive earnings number to support a Graham-style valuation. Debt-equity of 1.35 adds risk: a loss-making company with leverage has less room to survive adverse conditions. The Piotroski F-score of 4/9 is consistent with weak operational health. I also receive no dividend; waiting for a turnaround is not compensated. The one positive is promoter holding of 63.51%, which aligns owners with minority shareholders. ROCE of 11.33% suggests the operating assets can produce something, but leverage and loss-making leave the equity holder exposed. At 1.05 times book, you are paying full price for assets that are not earning their cost of capital. Benjamin Graham would insist on margin of safety; this business has no earnings margin, only hypothetical book value. I would put it on my watchlist, not in my portfolio. Evidence of a true turnaround—positive net profit, lower debt, and stable margins—is required before I can pay any price.

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