Rushil Decor (RUSHIL)

FairStock Score: 24/100 — RISKY

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

Key Financials

Strengths

• P/B of 0.83: market cap of ₹520 Cr is below book value, offering a margin of safety on stated assets.
• Promoter holding 55.10%, aligned with minority shareholders.
• Debt/equity at 0.44 is moderate, limiting financial distress risk.
• ROCE of 10.13% shows underlying capital can generate some operating surplus.
• Latest quarter sales ₹215 Cr and net profit ₹6 Cr show the business is still operational, not a shell.

Concerns

• ROE of 1.84% and profit decline of -50.74% indicate weak earnings power.
• P/E of 56.73 with PEG of 24.67 implies the market is paying too much for current earnings and growth.
• Piotroski F-Score 4/9 and FairStock Score 2/100 flag poor financial health.
• Sales growth of 2.30% and dividend yield of 0.56% provide little compensation for risk.

AI Analysis

Let me start with the obvious: a P/B of 0.83 and book value of ₹20.51 mean this stock is priced below what the balance sheet says. But being cheap for a reason is not cheap. The company earns an ROE of only 1.84%, and although ROCE is 10.13%, net profit has fallen 50.74% while sales grew just 2.30%. A P/E of 56.73 on a business that cannot grow earnings is not value; it is a warning. The latest quarter shows sales of ₹215 Cr and net profit of ₹6 Cr, so there is some operating pulse, but the trailing earnings implied by the P/E are only about ₹9 Cr. That is a razor-thin margin on a ₹520 Cr market cap. The debt-equity ratio of 0.44 gives some comfort; the company is not drowning, but with a dividend yield of 0.56%, the shareholder is not paid to wait. Promoter holding at 55.10% is good alignment, but alignment alone cannot create a moat. Graham might call this a cigar-butt: a stock below book value, but with deteriorating earnings and no clear catalyst. My rule is that a great business at a fair price beats a fair business at a great price. This looks like a subpar business at a low price. I would not rush in. If earnings stabilize and ROE climbs back to double digits, this could become an interesting asset play. Until then, I will watch from the sidelines and let the price sit in its 52-week range.

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