Rubicon Research Ltd.
ISIN: INE506V01022 • Market Cap: ₹29,758 Cr
The 5-Pillar Quality Audit for Rubicon Research Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (23.3%), Return on Capital Employed (24.5%), and equity compounding (19.1%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.21 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (31.4%) and 3Y PAT CAGR (46.9%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 103.25 vs PEG of 4.67 and Dividend Yield of 0.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 59.8%, backed by 16.9% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 24.5%)
Rubicon Research Ltd. generates exceptional return on capital employed of 24.5%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 19.1%)
Shareholder equity compounds at a healthy 19.1%, exceeding average Indian equity benchmarks.
Strong Topline Expansion (3Y Sales CAGR: 31.4%)
Revenue has expanded at 31.4% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 46.9%)
Net earnings have compounded at 46.9% annualized, demonstrating operating leverage.
Areas to Watch & Potential Risks
Priced for Perfection (P/E: 103.25)
A steep valuation multiple of 103.25 leaves little margin for safety against quarterly earnings misses.
Sectoral & Macro Headwinds (Healthcare)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Healthcare space.
Quantitative Strategy Eligibility
Checking RUBICON against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 75/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Healthcare Sector Peer Comparison
Compare RUBICON directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Rubicon Research Ltd. (RUBICON)Current | 75/100 | ₹29,758 Cr | 103.25 | 24.5% | 0.21 | — |
| Sun Pharmaceutical Industries Ltd. (SUNPHARMA) | 77/100 | ₹4.55 Lakh Cr | 37.65 | 20.4% | 0.05 | View |
| Divi's Laboratories Ltd. (DIVISLAB) | 73/100 | ₹2.26 Lakh Cr | 77.37 | 19.4% | 0.00 | View |
| Torrent Pharmaceuticals Ltd. (TORNTPHARM) | 64/100 | ₹1.91 Lakh Cr | 87.43 | 9.5% | 1.76 | View |
| Apollo Hospitals Enterprise Ltd. (APOLLOHOSP) | 70/100 | ₹1.27 Lakh Cr | 60.55 | 19.1% | 0.62 | View |
| Cipla Ltd. (CIPLA) | 63/100 | ₹1.14 Lakh Cr | 33.94 | 16.1% | 0.01 | View |
Frequently Asked Questions: Rubicon Research Ltd.
Q:What is the 5-Pillar Fundamental Score for Rubicon Research Ltd. (RUBICON)?
Rubicon Research Ltd. has a RupeeTools Fundamental Score of 75/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (87/100), Financial Health (77/100), Growth (99/100), Valuation (18/100), and Ownership Quality (78/100).
Q:Is RUBICON fundamentally strong for long-term investment?
Yes, RUBICON exhibits solid fundamental strength with a 75/100 score, driven by a return on equity of 19.1% and a debt-to-equity ratio of 0.21.
Q:Does RUBICON pass the Coffee Can Investing filter?
Yes! RUBICON satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does RUBICON compare against other Healthcare peers?
Within India's Healthcare sector, RUBICON trades at a P/E of 103.25 and generates an ROCE of 24.5%. Compare its 5-Pillar score of 75/100 against top sector peers like Sun Pharmaceutical Industries Ltd. (77/100), Divi's Laboratories Ltd. (73/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.