Rupa & Co (RUPA)
Slow GrowerFairStock Score: 45/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 1/1
Key Financials
| Current Price | ₹151.05 |
| Market Cap | ₹1,201.52 Cr |
| P/E Ratio | 16.56 |
| ROCE | 10.92% |
| ROE | 6.76% |
| Dividend Yield | 1.99% |
| Profit Growth | 50.7% |
| Debt/Equity | 0.24 |
| Sales Growth | 10.1% |
| Promoter Holding | 73.28% |
| 52-Week Range | ₹109.21 — ₹212.84 |
| Sector | Textiles & Apparels |
| Book Value | ₹133.97 |
Strengths
- Low leverage: Debt/Equity of 0.25 provides financial cushion
- Strong promoter holding of 73.28% aligns management with minority shareholders
- Dividend yield of 2.17% gives some income support
- P/B of 1.36 with book value of ₹125.08 offers modest asset backing
- Still profitable in the latest quarter: ₹16 Cr net profit on ₹314 Cr sales
Concerns
- Profit growth of -28.24% with sales growth of -0.92% shows stagnation
- ROE of 6.76% and ROCE of 10.92% are weak relative to the capital employed
- Piotroski F-Score of 3/9 signals poor fundamental health
- P/E of 15.99 is not cheap given declining earnings
AI Analysis
At ₹170.47, Rupa & Co has a market cap of ₹1,101 Cr. Graham would ask: is there a margin of safety? The book value is ₹125.08, so I am paying 1.36 times book for a business that earns only 6.76% on equity. That is not a compelling bargain; it is a subpar return on the money invested in the business. The latest quarter shows sales of ₹314 Cr and net profit of ₹16 Cr, but annual profit fell 28.24% while sales were flat at -0.92%. A company unable to grow sales and with profits shrinking sharply does not demonstrate a durable moat. Apparel is fiercely competitive, and these numbers reflect that reality. The Piotroski F-score of 3/9 is a clear red flag, and the FairStock Score of 16/100 reinforces my caution. On the positive side, debt is modest at 0.25 D/E, and the 2.17% dividend yield offers a small consolation. Promoter holding of 73.28% does align interests, but good ownership cannot replace a weak business model. At 15.99 P/E, the multiple may look digestible, but with earnings falling, it is not cheap. I need either a much lower price or clear evidence of a turnaround. Right now I see stagnation, weak returns, and deteriorating financial health. In Buffett's terms, this is a mediocre business at an unremarkable price. I will stay on the sidelines and wait for a better margin of safety.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer