Rajoo Engineers Limited

Industrials — Specialty Industrial Machinery · NSE

₹60.00+₹1.49 (+2.55%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Rajoo Engineers Limited engages in the manufacture and sale of plastic processing machineries and post extrusion equipment in India and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees260

Annual revenue₹338 Cr

How does it make money?

Turns over ₹338 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation. Each of its 260 employees supports ₹1.30 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin21.4%

Net margin14.1%

Revenue / employee₹1.30 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

What is its competitive advantage?Some evidence

ROCE of 17.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE17.6%

ROE13.8%

Peer median ROE17.1%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +115% while net margin moved +93% 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+115%

Margin effect+93%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.51 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

75/ 100

Good

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

Valuation

70/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

22.1x

2Y Median

26.9x

19 monthly readings · mean 36.9x · range 17.6x–102.9x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 18% below its 2y median of 26.9x. 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 67% below the peer median of 66.2x.

vs. its own history

Fair

26.9x median over 19 months · -18%

vs. sector peers

Cheap

66.2x median of 4 peers · -67%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

22.1x

P/B

3.15x

EV/EBITDA

14.9x

PEG

0.36

Dividend Yield

0.25%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 9.9% to 21.4% over 3 years.
Return on equity is rising
ROE has improved from 10.5% to 13.8%.
Return on capital is rising
ROCE has improved from 11.5% to 17.6%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 1147% over 3 years — worth checking what it funded.
Inventory building faster than sales
Inventory is up 262% against revenue growth of 115% — stock may not be moving.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 1147% over 3 years, from ₹2 Cr to ₹24 Cr.
🔴High leverageFinancial
Debt/Equity of 6.77x — earnings must service borrowings before shareholders see anything.
🔴Inventory building faster than salesFinancial
Inventory up 262% against revenue up 115% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 9.9% to 21.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 67% 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?

Leverage amplifies any setback
Debt/Equity of 6.77x. 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
3 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 22% a year✓ 29.0% CAGR
Latest reported year was 44.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 19%✓ 21.4%
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✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 17.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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 · 5 neutral · 2 weak

Market Cap

₹1,072 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.1x

Fair

Fairly valued against the generic band

P/B Ratio

3.15x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.71

Profitable

Profitable on a per-share basis

ROE

13.8%

Moderate

Moderate capital efficiency

ROCE

17.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

6.77x

High

High leverage

Revenue Growth (YoY)

44.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-5.4%

Falling

Profits are shrinking

Dividend Yield

0.25%

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

CMP

₹60

Operating Margin

15.9%

Good

Healthy core-business profitability

Net Margin

12.6%

Good

Strong bottom-line conversion

Current Ratio

1.30

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.51

Defensive

Steadier than the market

52W Range Position

30%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

56.8 / 53.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

66.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹157 Cr	₹194 Cr	₹250 Cr	₹338 Cr	+29.0%
EBITDA	₹16 Cr	₹30 Cr	₹54 Cr	₹72 Cr	+66.8%
EBITDA Margin	9.9%	15.4%	21.5%	21.4%	—
PAT (Net Profit)	₹11 Cr	₹21 Cr	₹38 Cr	₹48 Cr	+60.8%
EPS	₹0.7	₹1.28	₹2.32	₹2.74	+57.5%
ROE	10.5%	16.6%	23.4%	13.8%	—
ROCE	11.5%	16.6%	29.8%	17.6%	—
Total Debt	₹2 Cr	₹2 Cr	₹0 Cr	₹24 Cr	+131.9%
Free Cash Flow	₹19 Cr	-₹11 Cr	₹55 Cr	₹7 Cr	-27.8%

🟢 Revenue has grown at 29.0% a year over 3 years.

🟢 EBITDA has grown at 66.8% a year over 3 years.

🟢 EBITDA Margin has risen from 9.9% to 21.4% over 3 years (+11.5 pts).

🟢 PAT (Net Profit) has grown at 60.8% a year over 3 years.

🟢 EPS has grown at 57.5% a year over 3 years.

🟢 ROE has risen from 10.5% to 13.8% over 3 years (+3.3 pts).

🟢 ROCE has risen from 11.5% to 17.6% over 3 years (+6.1 pts).

🔴 Total Debt has grown at 131.9% a year over 3 years.

🔴 Free Cash Flow has shrunk at 27.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹677 Cr

Total Liabilities

₹317 Cr

Total Debt

₹24 Cr

Cash & Equivalents

₹17 Cr

Operating Cash Flow

₹68 Cr

Capex

-₹61 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

62.3%

Corporate Actions

Dividend Rate

₹0.15

Ex-Dividend Date

22 Sept 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive2 mixed3 general

Why Is Rajoo Engineers Share Price Falling Key Reasons 2026

Univest, 24 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Rajoo Engineers Q1FY27 net profit rises 15.5% on 44.7% revenue surge

scanx.trade, 24 JulResults

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

Rajoo Engineers' (NSE:RAJOOENG) Solid Earnings May Rest On Weak Foundations

Simply Wall Street, 09 MayResults

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

Rajoo Engineers Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Rajoo Engineers Standalone March 2026 Net Sales at Rs 46.78 crore, down 47.97% Y-o-Y

Moneycontrol.com, 29 Apr

Take Care Before Diving Into The Deep End On Rajoo Engineers Limited (NSE:RAJOOENG)

Simply Wall Street, 10 Feb

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong15.8/20

🟡Financial HealthAdequate11.5/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong10.7/15

🟡ValuationFair9.3/15

🔴RiskHigh3.9/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 22% a year29.0% CAGR
✓EBITDA margin holds above 19%21.4%
✓Free cash flow remains positive₹7 Cr
✓Debt / EBITDA stays below 2x0.3x
✓ROCE stays above 15%17.6%