Raaj Medisafe India Limited

Consumer Cyclical — Packaging & Containers · BSE

₹105.21−₹0.51 (−0.48%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Raaj Medisafe India Limited manufactures and sells disposable hygiene products, HDPE containers, PP closures and plastic liners for packaging of goods, and aluminum crown caps in India. The company operates through two segments, Plastic and Hygiene.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees214

Annual revenue₹80 Cr

How does it make money?

Turns over ₹80 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 214 employees supports ₹37.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹37.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS 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 11.6% 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 ROE25.9%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +107% while net margin moved -74% 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+107%

Margin effect-74%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 3.9% is weak
✗ ROE has fallen by 40.6 points over the period

Quality vs. Valuation

Company Quality

42/ 100

Weak

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

Valuation

42/ 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.

Historical Valuation

Current P/E

52.6x

3Y Median

20.0x

40 monthly readings · mean 28.2x · range 11.7x–96.9x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 163% above its 3y median of 20.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 24% below the peer median of 69.2x.

vs. its own history

Expensive

20.0x median over 40 months · +163%

vs. sector peers

Cheap

69.2x median of 4 peers · -24%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

18.7x

PEG

6.49

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 44.5% to 3.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 33.4% to 11.6% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 314% over 3 years, from ₹16 Cr to ₹65 Cr.
🔴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.
🟡Profit is decliningFinancial
Net profit is down 46% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 51% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 24% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 5.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
The price already assumes success
The stock trades 163% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 44.5% to 3.9%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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
2 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

1Revenue growth stays above 21% a year✓ 27.5% CAGR
Latest reported year was 86.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 15.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 5.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹30 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.7x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ 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 · 6 neutral · 3 weak

Market Cap

₹173 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

52.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.71x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2

Profitable

Profitable on a per-share basis

ROE

3.9%

Weak

Weak capital efficiency

ROCE

11.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.38x

Moderate

Moderate leverage

Revenue Growth (YoY)

86.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

8.1%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

-₹30 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

11.4%

Average

Average margins

Net Margin

2.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.43

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.28

Defensive

Steadier than the market

52W Range Position

88%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

100.5 / 91.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

79.6

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹39 Cr	₹43 Cr	₹62 Cr	₹80 Cr	+27.5%
EBITDA	₹6 Cr	₹7 Cr	₹9 Cr	₹12 Cr	+29.0%
EBITDA Margin	14.5%	15.2%	13.8%	15.0%	—
PAT (Net Profit)	₹3 Cr	₹3 Cr	₹6 Cr	₹2 Cr	-18.4%
EPS	₹3.06	₹3.07	₹4.6	₹1.1	-28.9%
ROE	44.5%	30.7%	22.8%	3.9%	—
ROCE	33.4%	22.6%	17.6%	11.6%	—
Total Debt	₹16 Cr	₹26 Cr	₹35 Cr	₹65 Cr	+60.6%
Free Cash Flow	-₹2 Cr	-₹7 Cr	-₹15 Cr	-₹30 Cr	—

🟢 Revenue has grown at 27.5% a year over 3 years.

🟢 EBITDA has grown at 29.0% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 15.0% over 3 years.

🔴 PAT (Net Profit) has shrunk at 18.4% a year over 3 years.

🔴 EPS has shrunk at 28.9% a year over 3 years.

🔴 ROE has fallen from 44.5% to 3.9% over 3 years (-40.6 pts).

🔴 ROCE has fallen from 33.4% to 11.6% over 3 years (-21.9 pts).

🔴 Total Debt has grown at 60.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹121 Cr

Total Liabilities

₹75 Cr

Cash & Equivalents

₹12 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹33 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.2%

Corporate Actions

Ex-Dividend Date

27 Jul 1994

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

6 general

Raaj Medisafe India Share Price near 52-week high today

Univest, 12 Oct

Raaj Medisafe India Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Raaj Medisafe India Streak: Share Price and Fundamentals

Univest, 06 Oct

Broad-Based Technical Strength Lifts Raaj Medisafe India Ltd to 52-Week High of Rs 106

MarketsMojo, 09 Oct

Raaj Medisafe promoters consolidate stake via 1.35% share gift

scanx.trade, 16 Sept

Raaj Medisafe India Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

MiddlingBusiness Quality · Growth

WeakFinancial Health · Profitability · Valuation · 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. 2 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑