Rajkot Investment Trust Limited

Financial Services — Credit Services · BSE

₹43.00+₹2.00 (+4.88%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by 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. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Rajkot Investment Trust Limited operates as a non-banking finance company in India. The company is involved in financing and investment activities. Rajkot Investment Trust Limited was incorporated in 1982 and is based in Surat, India.

IndustryCredit Services

SectorFinancial Services

Employees7

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹37 reaches shareholders as profit, with ₹-15 left at the operating level before interest, tax and depreciation. Each of its 7 employees supports ₹5.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹5.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK 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?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +66% while net margin moved +299% 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+66%

Margin effect+299%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.08 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

76/ 100

Good

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

Valuation

66/ 100

Fair

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

33.1x

3Y Median

78.2x

40 monthly readings · mean 96.3x · range 26.3x–232.1x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 58% below its 3y median of 78.2x. 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 95% above the peer median of 17.0x.

vs. its own history

Cheap

78.2x median over 40 months · -58%

vs. sector peers

Expensive

17.0x median of 4 peers · +95%

vs. generic bands

Fair

15x–35x

EV/EBITDA

—

PEG

0.38

What's Good / What's Bad

🟢 What's Going Well1

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

🔴Significant margin compressionFinancial
EBITDA margin has fallen 27.0 points, from 11.9% to -15.0%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 58% 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?

Margins are being competed away
EBITDA margin has fallen from 11.9% to -15.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 95% above the peer median. That premium needs a reason that persists, or it closes.
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.

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

1Revenue growth stays above 14% a year✓ 18.4% CAGR
Latest reported year was 23.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -17%✓ -15.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 2.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 78.2x✓ 33.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 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

4 good · 4 neutral · 3 weak

Market Cap

₹4 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

33.1x

Fair

Fairly valued against the generic band

P/B Ratio

0.88x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.3

Profitable

Profitable on a per-share basis

ROE

2.6%

Weak

Weak capital efficiency

ROCE

-0.2%

Weak

Low return on total capital employed

Debt/Equity

5.91x

High

High leverage

Revenue Growth (YoY)

23.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

1.1%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

55.9%

Good

Healthy core-business profitability

Net Margin

20.4%

Good

Strong bottom-line conversion

Current Ratio

113.75

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.08

Defensive

Steadier than the market

52W Range Position

50%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

44.1 / 43.8

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	₹1 Cr	₹0 Cr	+18.4%
EBITDA	₹0 Cr	₹0 Cr	-₹0 Cr	-₹0 Cr	—
EBITDA Margin	11.9%	33.2%	-4.8%	-15.0%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+87.8%
EPS	₹0.19	₹0.55	₹1.49	₹1.28	+88.9%
ROE	0.4%	1.2%	3.2%	2.6%	—
ROCE	0.4%	0.3%	-0.1%	-0.2%	—
Total Debt	₹8 Cr	₹21 Cr	₹23 Cr	₹29 Cr	+52.5%
Free Cash Flow	-₹13 Cr	₹1 Cr	₹1 Cr	₹0 Cr	—

🟢 Revenue has grown at 18.4% a year over 3 years.

🔴 EBITDA has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 EBITDA Margin has fallen from 11.9% to -15.0% over 3 years (-27.0 pts).

🟢 PAT (Net Profit) has grown at 87.8% a year over 3 years.

🟢 EPS has grown at 88.9% a year over 3 years.

🟢 ROE has risen from 0.4% to 2.6% over 3 years (+2.2 pts).

🟡 ROCE has held roughly flat at -0.2% over 3 years.

🔴 Total Debt has grown at 52.5% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹13 Cr to ₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹34 Cr

Total Liabilities

₹30 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.1%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

6 general

SHAH INVESTOR'S HOME LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 18 Oct

Rajkot Investment Trust Ltd. Peer Comparison – Compare with Others

Value Research, 16 Sept

Rajkot Investment Trust appoints Arun Sharma as Joint CFO

scanx.trade, 01 Oct

Rajkot Investment Trust Limited Announces Appointment of Arun Sharma as Key Managerial Personnel, Effective October 01, 2026

www.marketscreener.com, 01 Oct

Gujarat Winding Systems (BSE:541627) - Stock Analysis

Simply Wall Street, 24 Sept

Rajkot Investment Trust Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 16 Sept

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 4 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑