Rajnish Wellness Limited

Consumer Defensive — Household & Personal Products · BSE

₹0.37₹0.00 (0.00%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Rajnish Wellness Limited manufactures and sells various ayurvedic medicinal products for personal sexual wellness in India. It provides ayurvedic ethical medicines, personal care, and medicinal sexual wellness products under the PlayWin brand name.

IndustryHousehold & Personal Products

SectorConsumer Defensive

Employees19

Annual revenue₹142 Cr

How does it make money?

Turns over ₹142 Cr a year. Of every ₹100 of sales, about ₹-4 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 19 employees supports ₹7.46 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin0.9%

Net margin-4.4%

Revenue / employee₹7.46 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.

HINDUSTAN UNILEVER LTD.P/E 42.5x · ROE 21.5%

DABUR INDIA LTDP/E 34.7x · ROE 17.2%

ITC LTDP/E 16.6x · ROE 27.4%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

What is its competitive advantage?Little sign of one

Returns on capital of -8.0% 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.

ROCE-8.0%

ROE-6.1%

Peer median ROE27.4%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +449% while net margin moved -349% 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+449%

Margin effect-349%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 6.7 points over the period

Quality vs. Valuation

Company Quality

51/ 100

Average

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

Valuation

36/ 100

Expensive

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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

0.37x

EV/EBITDA

21.5x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -4.2% to 0.9% over 3 years.
Debt is being paid down
Total debt is down 98% over 3 years.
Very low debt
Debt/Equity of 0.17x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention3

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 0.6% to -6.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 0.7% to -8.0% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 2 high · 3 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -8412.8x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹6 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 1.9x to -8412.8x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹9 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 32% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -4.2% to 0.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 98% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 0.6% to -6.1%. 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
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 57% a year✓ 76.4% CAGR
Latest reported year was 580.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -1%✓ 0.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹9 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ -8412.8x
How much operating profit can fall before interest stops being comfortably covered.
5Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

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 · 2 neutral · 6 weak

Market Cap

₹38 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.37x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.06

Loss-making

Negative earnings per share — the business is losing money

ROE

-6.1%

Weak

Weak capital efficiency

ROCE

-8.0%

Weak

Low return on total capital employed

Debt/Equity

0.17x

Low

Conservative leverage

Revenue Growth (YoY)

580.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-57.1%

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

-₹9 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹0.37

Operating Margin

0.4%

Weak

Thin margins leave little room for error

Net Margin

-3.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

25.13

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.11

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

0.4 / 0.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹26 Cr	₹77 Cr	₹49 Cr	₹142 Cr	+76.4%
EBITDA	-₹1 Cr	₹3 Cr	₹1 Cr	₹1 Cr	—
EBITDA Margin	-4.2%	4.3%	1.3%	0.9%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹0 Cr	-₹6 Cr	—
EPS	₹0.01	₹0.01	₹0	₹-0.62	—
ROE	0.6%	1.2%	0.2%	-6.1%	—
ROCE	0.7%	2.2%	0.6%	-8.0%	—
Total Debt	₹10 Cr	₹5 Cr	₹0 Cr	₹0 Cr	-74.5%
Free Cash Flow	-₹62 Cr	₹2 Cr	-₹4 Cr	-₹9 Cr	—

🟢 Revenue has grown at 76.4% a year over 3 years.

🟢 EBITDA has turned positive, from -₹1 Cr to ₹1 Cr.

🟢 EBITDA Margin has risen from -4.2% to 0.9% over 3 years (+5.2 pts).

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹6 Cr.

🔴 EPS has turned negative, from ₹0.01 to ₹-0.62.

🔴 ROE has fallen from 0.6% to -6.1% over 3 years (-6.7 pts).

🔴 ROCE has fallen from 0.7% to -8.0% over 3 years (-8.7 pts).

🟢 Total Debt has shrunk at 74.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹109 Cr

Total Liabilities

₹6 Cr

Total Debt

₹0 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

-₹9 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

15.2%

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

1 positive5 general

Rajnish Wellness Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Rajnish Wellness shareholders adopt FY26 accounts, approve ₹10 crore related party transactions

scanx.trade, 26 Sept

Rajnish Wellness - 13 penny stocks plunge up to 90% in FY26. Are you affected?

The Economic Times, 29 Mar

Rajnish Wellness Q1 Results: Net profit surges 564% to ₹310.9 crore

scanx.trade, 13 AugResults

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

Compare with

Equitymaster, 30 Sept

Rajnish Wellness Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Watch Items

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

🔴Business QualityWeak4.7/20

🟡Financial HealthAdequate12.1/20

🟢GrowthStrong18.4/20

🔴ProfitabilityWeak2.5/15

🟡ValuationFair7.1/15

🔴RiskHigh4/10

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

This thesis breaks if

✓Revenue growth stays above 57% a year76.4% CAGR
✓EBITDA margin holds above -1%0.9%
✗Free cash flow remains positive-₹9 Cr
✗Interest cover stays above 3x-8412.8x
✓Debt / EBITDA stays below 2x0.1x