RTCL Limited

Real Estate — Real Estate - Development · BSE

₹13.49+₹0.04 (+0.30%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, 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. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

RTCL Limited engages in the real estate development business in India. It operates through Trading/Agency, Departmental Store, and Real Estate Developers segments.

IndustryReal Estate - Development

SectorReal Estate

Employees9

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹168 reaches shareholders as profit, with ₹216 left at the operating level before interest, tax and depreciation. Each of its 9 employees supports ₹11.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹11.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY 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 4.7% 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 ROE10.3%

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 +981% 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+981%

Margin effect-74%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 3.9% is weak

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

73/ 100

Cheap

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

15.9x

3Y Median

18.2x

40 monthly readings · mean 21.1x · range 9.1x–44.5x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 13% below its 3y median of 18.2x. 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 47% below the peer median of 30.2x.

vs. its own history

Fair

18.2x median over 40 months · -13%

vs. sector peers

Cheap

30.2x median of 3 peers · -47%

vs. generic bands

Fair

15x–35x

EV/EBITDA

8.2x

PEG

0.38

What's Good / What's Bad

🟢 What's Going Well2

Return on capital is rising
ROCE has improved from 2.5% to 4.7%.
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

4 items require attention · 4 high

🔴High leverageFinancial
Debt/Equity of 5.52x — earnings must service borrowings before shareholders see anything.
🔴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 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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 795.3 points, from 1011.6% to 216.3%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 47% 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?

Margins are being competed away
EBITDA margin has fallen from 1011.6% to 216.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 5.52x. Interest is payable whether or not the business has a good year.
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
4 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 91% a year✓ 121.1% CAGR
Set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 214%✓ 216.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹2 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 4.7%
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
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ 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 · 4 neutral · 5 weak

Market Cap

₹16 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.9x

Fair

Fairly valued against the generic band

P/B Ratio

0.37x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.85

Profitable

Profitable on a per-share basis

ROE

3.9%

Weak

Weak capital efficiency

ROCE

4.7%

Weak

Low return on total capital employed

Debt/Equity

5.52x

High

High leverage

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

-77.5%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.17

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.12

Defensive

Steadier than the market

52W Range Position

14%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

13.8 / 13.6

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹4 Cr	—	₹1 Cr	+121.1%
EBITDA	₹1 Cr	₹4 Cr	₹1 Cr	₹2 Cr	+32.2%
EBITDA Margin	1011.6%	94.3%	—	216.3%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹1 Cr	₹2 Cr	+41.4%
EPS	₹0.52	₹1.75	₹0.81	₹1.47	+41.4%
ROE	1.5%	5.0%	2.2%	3.9%	—
ROCE	2.5%	6.7%	2.4%	4.7%	—
Total Debt	₹2 Cr	₹2 Cr	₹2 Cr	₹2 Cr	+7.1%
Free Cash Flow	-₹1 Cr	-₹1 Cr	-₹1 Cr	-₹2 Cr	—

🟢 Revenue has grown at 121.1% a year over 3 years.

🟢 EBITDA has grown at 32.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 1011.6% to 216.3% over 3 years (-795.3 pts).

🟢 PAT (Net Profit) has grown at 41.4% a year over 3 years.

🟢 EPS has grown at 41.4% a year over 3 years.

🟢 ROE has risen from 1.5% to 3.9% over 3 years (+2.4 pts).

🟢 ROCE has risen from 2.5% to 4.7% over 3 years (+2.1 pts).

🔴 Total Debt has grown at 7.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹51 Cr

Total Liabilities

₹6 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹2 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

55.4%

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

1 positive2 mixed3 general

RTCL Limited posts ₹17.96 lakh profit in Q1FY27

scanx.trade, 11 Aug

RTCL Limited discloses related party transactions for FY26

scanx.trade, 30 May

RTCL Limited Reports Mixed Q2 FY2026 Results with Significant Profit Growth

scanx.trade, 11 NovResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

RTCL Limited FY26 net profit rises 81% to ₹176.13 lakh

scanx.trade, 31 MayResults

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

RTCL discloses 32nd AGM voting results; all resolutions pass with 97.71% support

scanx.trade, 01 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

RTCL Limited Submits Annual Secretarial Compliance Report for Year Ended March 2026

scanx.trade, 08 Apr

Watch Items

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

StrongGrowth · Valuation

MiddlingBusiness Quality · Financial Health

WeakProfitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑