Rashi Peripheral (RPTECH)
Fast GrowerFairStock Score: 60/100 — STEADY
Score breakdown: P/E: 3/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹834.05 |
| Market Cap | ₹5,496.36 Cr |
| P/E Ratio | 17.7 |
| ROCE | 14.19% |
| ROE | 14.28% |
| Dividend Yield | 0.24% |
| Profit Growth | 64% |
| Debt/Equity | 0.49 |
| Sales Growth | 61.9% |
| Promoter Holding | 63.98% |
| 52-Week Range | ₹292.25 — ₹951.45 |
| Sector | IT - Hardware |
| Book Value | ₹307.34 |
Strengths
- Strong growth momentum: sales grew 42.6% and profit grew 131%.
- Low valuation: P/E of 10.02 and PEG of 0.12, far below typical growth multiples.
- Healthy balance sheet: debt/equity of 0.52, ROE of 14.28%, ROCE of 14.19%.
- High promoter holding of 63.98% aligns management with minority shareholders.
- Piotroski F-Score of 7/9 indicates decent fundamental strength.
Concerns
- Very thin net margin: latest quarter net profit of ₹75 Cr on ₹4,030 Cr sales is under 2%, leaving little room for error.
- Distribution business in computer hardware has limited pricing power and low moat.
- Price volatility: 52-week range of ₹276-₹951.45 suggests cyclical or sentiment-driven swings.
- Dividend yield of just 0.54% offers little downside protection in a downturn.
AI Analysis
When I look at Rashi Peripheral, the first thing I see is a price-to-earnings ratio of 10.02 and a PEG of 0.12. That seems like a bargain on paper. But I recall Graham's warning: the market can price a mediocre business cheaply for a reason. This is a computer hardware distribution company, and distribution rarely builds lasting moats. Sales grew 42.6% and profit grew 131%, but that profit growth comes off a razor-thin base — the latest quarter shows ₹4,030 Cr sales and just ₹75 Cr net profit, a margin below 2%. A small shift in supplier terms or customer credit can wipe that out. The balance sheet is not frightening: debt/equity is 0.52, ROE is 14.28%, and the Piotroski score of 7 out of 9 suggests decent financial health. Promoter holding at 63.98% is reassuring — they eat their own cooking. Book value is ₹250.11, so at ₹475.55 I am paying 1.9 times book. That is not a deep value margin of safety from an asset standpoint. And the 52-week range of ₹276 to ₹951.45 tells me this is a volatile ride. Is it a fast grower or a cyclical chasing margins? I would not extrapolate 131% profit growth. I need to see whether rising sales can translate into durable free cash flow and whether the company can maintain even a modest net margin. If it can, this might be a decent compounder. If not, the low P/E is a value trap. I would keep it on a watchlist, not a commitment.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer