Rajnandini Metal Limited

Basic Materials — Copper · NSE

₹3.00−₹0.01 (−0.33%)

DalalBaazaar Score

40 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by 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. Whether sales start growing again is 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 Rajnandini Metal Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Rajnandini Metal Limited manufactures and trades copper continuous casting rods and wires in India. The company offers copper, brass, zinc, aluminium, and ferrous and nonferrous metals.

IndustryCopper

SectorBasic Materials

Employees93

Annual revenue₹263 Cr

How does it make money?

Turns over ₹263 Cr a year. Of every ₹100 of sales, about ₹-0 reaches shareholders as profit, with ₹2 left at the operating level before interest, tax and depreciation. Each of its 93 employees supports ₹2.83 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.83 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS 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 4.9% 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 ROE22.3%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -74% while net margin moved -109% 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-74%

Margin effect-109%

DalalBaazaar Score

40/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 36.5% a year

Quality vs. Valuation

Company Quality

36/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

18.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 81% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.24x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 33.0% to -0.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 54.0% to 4.9% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 4 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.0x — little room if earnings dip.
🔴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.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🔴Inventory building faster than salesFinancial
Inventory up 33% against revenue up -74% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 81% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹21 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 33.0% to -0.6%. 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.
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

1EBITDA margin holds above 0%✓ 2.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ 1.0x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹21 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 4.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ 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

₹83 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

1.50x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0

Loss-making

Negative earnings per share — the business is losing money

ROE

-0.6%

Weak

Weak capital efficiency

ROCE

4.9%

Weak

Low return on total capital employed

Debt/Equity

0.24x

Low

Conservative leverage

Revenue Growth (YoY)

-29.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

85.3%

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

₹21 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

1.4%

Weak

Thin margins leave little room for error

Net Margin

0.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.80

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.06

Defensive

Steadier than the market

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

3.1 / 3.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,029 Cr	₹1,212 Cr	₹1,034 Cr	₹263 Cr	-36.5%
EBITDA	₹30 Cr	₹30 Cr	₹12 Cr	₹5 Cr	-43.5%
EBITDA Margin	2.9%	2.5%	1.1%	2.0%	—
PAT (Net Profit)	₹14 Cr	₹15 Cr	-₹2 Cr	-₹0 Cr	—
EPS	₹0.5	₹0.55	—	—	—
ROE	33.0%	26.9%	-3.8%	-0.6%	—
ROCE	54.0%	44.4%	15.4%	4.9%	—
Total Debt	₹72 Cr	₹100 Cr	₹44 Cr	₹13 Cr	-43.0%
Free Cash Flow	-₹14 Cr	-₹21 Cr	₹62 Cr	₹21 Cr	—

🔴 Revenue has shrunk at 36.5% a year over 3 years.

🔴 EBITDA has shrunk at 43.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 2.0% over 3 years.

🔴 PAT (Net Profit) has turned negative, from ₹14 Cr to -₹0 Cr.

🔴 ROE has fallen from 33.0% to -0.6% over 3 years (-33.6 pts).

🔴 ROCE has fallen from 54.0% to 4.9% over 3 years (-49.1 pts).

🟢 Total Debt has shrunk at 43.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹14 Cr to ₹21 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹119 Cr

Total Liabilities

₹63 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹22 Cr

Capex

-₹0 Cr

Corporate Actions

Ex-Dividend Date

11 Aug 2022

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

1 positive1 mixed4 general

Rajnandini Metal Share Price Forecast: 3 Year Outlook to 2030

Univest, 23 Jul

Rajnandini Metal Limited (NSE:RAJMET) Looks Inexpensive But Perhaps Not Attractive Enough

Simply Wall Street, 30 Dec

Rajnandini Metal Stock Prediction 2026: Analyst Target, Forecast and Key Levels

Univest, 22 JunAnalyst view

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

Rajnandini Metal Share: Bull Case vs Bear Case for 2026

Univest, 18 Sept

RAJMET Stock Price and Chart — NSE:RAJMET

TradingView, 23 Jan

Rajnandini Metal Ltd grosses Rs 1,000 cr sales in 2022, Q1 profit up 127%

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 (-29.7%) 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

StrongFinancial Health

MiddlingValuation

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. 4 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑