Rubicon Research (RUBICON)

FairStock Score: 55/100 — STEADY

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

Key Financials

Strengths

• Revenue grew 51.73% and profit grew 91.23%, with a 5-year revenue CAGR of 32.45%
• ROCE of 26.05% indicates strong return on capital employed
• Piotroski F-Score of 7/9 suggests healthy fundamentals
• Promoter holding at 59.99% aligns interests with shareholders
• Latest quarter sales of ₹476 Cr and net profit of ₹73 Cr show continued momentum

Concerns

• Valuation is rich: P/E 76.33 and P/B 19.82 leave little room for error
• Free cash flow of ₹94 Cr is small relative to the ₹12,856 Cr market cap
• Debt/Equity of 0.88 is moderate and needs monitoring in a capital-intensive pharma business
• Zero dividend means shareholders rely entirely on price appreciation

AI Analysis

At ₹927.75, Rubicon Research tests my patience. With a P/E of 76.33 and P/B of 19.82 against a book value of ₹46.80, the market is paying for tomorrow's earnings, not today's assets. Graham would say there is little margin of safety here. That said, the business is compounding nicely. Sales grew 51.73%, profit grew 91.23%, and the five-year revenue CAGR of 32.45% shows a strong track record. ROCE of 26.05% suggests management redeploys capital well, and the Piotroski F-Score of 7/9 gives me comfort on operating fundamentals. Promoter holding of 59.99% aligns interests with public shareholders. But I have to weigh the balance sheet and the cash machine. Debt/Equity of 0.88 is acceptable but not pristine, and free cash flow of ₹94 Cr against a ₹12,856 Cr market cap is thin. The company pays no dividend, so my return depends entirely on future growth and eventual cash generation. The 52-week range—₹570.75 to ₹1686.45—tells me the stock can be volatile. It has already fallen sharply from its high, but that does not make it cheap at 76 times earnings. A PEG of 1.07 looks reasonable only if profit growth of 91% continues; rates like that mean-revert. The FairStock Score of 55/100, 'Steady', matches my view: a quality business at an unexciting valuation. If Rubicon can convert more profits into free cash flow, reduce debt, and sustain high growth, the multiple can be earned. If growth slows, the market will rerate down. I would keep it on the watchlist and consider buying only at a better price with a clear margin of safety.

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