Rajdarshan Industries Limited

Basic Materials — Other Industrial Metals & Mining · NSE

₹32.99−₹0.51 (−1.52%)

DalalBaazaar Score

33 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Rajdarshan Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Rajdarshan Industries Limited trades in quartz grit and powder, and consumables n commission basis in India. It is also involved in the project management, marketing consultancy, limestone, cement plant, marble and mines machine activities, as well as trading in minerals.

IndustryOther Industrial Metals & Mining

SectorBasic Materials

Employees3

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹-31 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 3 employees supports ₹19.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹19.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 0.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE12.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -70% while net margin moved -298% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-70%

Margin effect-298%

DalalBaazaar Score

33/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

30/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

30/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

104.5x

PEG

—

Red Flags

3 items require attention · 3 high

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🔴Receivables growing faster than salesFinancial
Receivables up 114% against revenue up -70% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 114% against revenue up -70%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 16%✓ 17.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ 0.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 3 neutral · 6 weak

Market Cap

₹11 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.50x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.21

Loss-making

Negative earnings per share — the business is losing money

ROE

-0.9%

Weak

Weak capital efficiency

ROCE

0.2%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-1.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

46.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-35.4%

Weak

Thin margins leave little room for error

Net Margin

-11.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

38.07

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.02

Defensive

Steadier than the market

52W Range Position

16%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

33.6 / 35.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

38.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹2 Cr	₹2 Cr	₹1 Cr	-32.9%
EBITDA	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-31.8%
EBITDA Margin	16.8%	19.6%	2.2%	17.6%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹0 Cr	-₹0 Cr	—
EPS	₹0.95	₹2.32	₹0.76	₹-0.57	—
ROE	1.4%	3.4%	1.1%	-0.9%	—
ROCE	1.5%	4.2%	0.8%	0.2%	—
Free Cash Flow	-₹0 Cr	-₹0 Cr	-₹1 Cr	-₹0 Cr	—

🔴 Revenue has shrunk at 32.9% a year over 3 years.

🔴 EBITDA has shrunk at 31.8% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 17.6% over 3 years.

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 EPS has turned negative, from ₹0.95 to ₹-0.57.

🔴 ROE has fallen from 1.4% to -0.9% over 3 years (-2.3 pts).

🔴 ROCE has fallen from 1.5% to 0.2% over 3 years (-1.3 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹21 Cr

Total Liabilities

₹0 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

64.8%

Peer Comparison

Company	P/E	ROE
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%
TATA STEEL LIMITED	19.8x	10.8%

Recent News

1 mixed5 general

Rajdarshan Industries Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Rajdarshan Industries Ltd leads gainers in 'B' group

Business Standard, 22 Jul

Rajdarshan Industries posts ₹17.31 lakh loss in FY26; AGM on Sept 30

scanx.trade, 30 Sept

Rajdarshan Industries Share Price Target 2026: Rs 50.6 Analyst Forecast

Univest, 17 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Rajdarshan Industries Share: Bull Case vs Bear Case for 2026

Univest, 18 Sept

Momentum Stocks: Bandhan Bank, Sunteck Realty, Gradiente Infotainment see negative breakdowns

Moneycontrol.com, 22 Jul

Watch Items

Revenue growth is negative (-1.6%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 3 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑