Radix Industries (India) Limited

Consumer Defensive — Household & Personal Products · BSE

₹132.40+₹4.15 (+3.24%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, but sales are shrinking. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:57 pm

Understanding the Business

Company site ↗

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

What does this company do?

Radix Industries (India) Limited engages in the manufacture and sale of human hair products in India. It provides wefts, ponytail, hand weft, frontals, closures, piece clipset, fishnet, and volumizer. The company also exports its products.

IndustryHousehold & Personal Products

SectorConsumer Defensive

Employees11

Annual revenue₹50 Cr

How does it make money?

Turns over ₹50 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 11 employees supports ₹4.58 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.58 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., DABUR INDIA LTD, ITC LTD, BRITANNIA INDUSTRIES LTD. 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?Some evidence

ROCE of 18.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE27.4%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +95% while net margin moved +7% 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+95%

Margin effect+7%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 67.9x is demanding — it needs sustained high growth to justify
✓ P/E is 39% below its own historical median of 110.7x — cheap by its own standards
✗ P/B of 8.48x is a steep premium to book

Quality vs. Valuation

Company Quality

70/ 100

Good

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.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

67.9x

3Y Median

110.7x

40 monthly readings · mean 112.5x · range 62.1x–168.3x

Sector Median

38.6x

median of 4 sector peers

🟢Current valuation is approximately 39% below its 3y median of 110.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 76% above the peer median of 38.6x.

vs. its own history

Cheap

110.7x median over 40 months · -39%

vs. sector peers

Expensive

38.6x median of 4 peers · +76%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

40.1x

PEG

2.44

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 91% over 3 years.
Return on equity is rising
ROE has improved from 8.4% to 13.7%.
Return on capital is rising
ROCE has improved from 12.0% to 18.3%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 91% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 39% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
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?

A premium to the sector to defend
It trades 76% above the peer median. That premium needs a reason that persists, or it closes.
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.

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

1Revenue growth stays above 19% a year✓ 24.8% CAGR
Latest reported year was -58.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 9.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹7 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 18.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

3 good · 4 neutral · 4 weak

Market Cap

₹199 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

67.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

8.48x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹1.95

Profitable

Profitable on a per-share basis

ROE

13.7%

Moderate

Moderate capital efficiency

ROCE

18.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.95x

Moderate

Moderate leverage

Revenue Growth (YoY)

-58.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

-42.9%

Falling

Profits are shrinking

Dividend Yield

0.38%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹7 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

14.5%

Average

Average margins

Net Margin

6.4%

Average

Average bottom-line conversion

Current Ratio

206.80

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.32

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

130.8 / 136.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹26 Cr	₹33 Cr	₹48 Cr	₹50 Cr	+24.8%
EBITDA	₹2 Cr	₹3 Cr	₹4 Cr	₹5 Cr	+25.8%
EBITDA Margin	9.0%	10.4%	8.0%	9.2%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹3 Cr	₹3 Cr	+27.9%
EPS	₹1.02	₹1.49	₹1.75	₹2.13	+27.8%
ROE	8.4%	11.8%	12.6%	13.7%	—
ROCE	12.0%	17.4%	17.6%	18.3%	—
Total Debt	₹2 Cr	₹1 Cr	₹0 Cr	₹0 Cr	-55.3%
Free Cash Flow	₹7 Cr	₹3 Cr	₹7 Cr	₹7 Cr	-0.5%

🟢 Revenue has grown at 24.8% a year over 3 years.

🟢 EBITDA has grown at 25.8% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 9.2% over 3 years.

🟢 PAT (Net Profit) has grown at 27.9% a year over 3 years.

🟢 EPS has grown at 27.8% a year over 3 years.

🟢 ROE has risen from 8.4% to 13.7% over 3 years (+5.3 pts).

🟢 ROCE has risen from 12.0% to 18.3% over 3 years (+6.4 pts).

🟢 Total Debt has shrunk at 55.3% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (-0.5% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹24 Cr

Total Liabilities

₹0 Cr

Cash & Equivalents

₹12 Cr

Operating Cash Flow

₹7 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

95.0%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

16 Sept 2026

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
DABUR INDIA LTD	34.7x	17.2%
ITC LTD	16.6x	27.4%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

4 positive2 general

Radix Industries (India) Ltd is Rated Sell

MarketsMojo, 06 Oct

Radix Industries shareholders adopt FY26 financials and dividend at 32nd AGM

scanx.trade, 23 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Radix Industries Limited Proposes Dividend for the Financial Year 2025-26

marketscreener.com, 01 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

H.R. Hygiene Products (BSE:544848) - Stock Analysis

Simply Wall Street, 05 Aug

Radix Industries Posts FY26 Net Profit of ₹319.70 Lakhs, Recommends 5% Dividend

scanx.trade, 12 MayCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Arihant Capital Markets consolidated net profit rises 69.21% in the June 2026 quarter

Business Standard, 25 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Revenue growth is negative (-58.1%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Risk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑