Rajasthan Securities Limited

Utilities — Utilities - Regulated Gas · BSE

₹60.00−₹0.10 (−0.17%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Rajasthan Securities Limited engages in investment and securities trading business in India. It trades in equity shares, derivative instruments, and capital placements.

IndustryUtilities - Regulated Gas

SectorUtilities

Employees3

Annual revenue₹106 Cr

How does it make money?

Turns over ₹106 Cr a year. Of every ₹100 of sales, about ₹76 reaches shareholders as profit, with ₹99 left at the operating level before interest, tax and depreciation. Each of its 3 employees supports ₹35.40 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹35.40 Cr

Who are its competitors?

The closest listed comparisons in its industry are NTPC LTD, POWER GRID CORP. LTD., TATA POWER CO LTD, ADANI POWER 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?Some evidence

ROCE of 89.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE15.8%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.94 — 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
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

75/ 100

Good

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

Valuation

85/ 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

6.9x

1.3Y Median

49.7x

16 monthly readings · mean 37.9x · range 5.4x–59.3x

Sector Median

20.6x

median of 4 sector peers

🟢Current valuation is approximately 86% below its 1.3y median of 49.7x. 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 66% below the peer median of 20.6x.

vs. its own history

Cheap

49.7x median over 16 months · -86%

vs. sector peers

Cheap

20.6x median of 4 peers · -66%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

4.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Debt is being paid down
Total debt is down 99% over 3 years.
Return on equity is rising
ROE has improved from -13.0% to 69.3%.
Return on capital is rising
ROCE has improved from -5.8% to 89.3%.
High return on capital employed
ROCE of 89.3% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.05x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 1 high · 2 watch

🔴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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹62 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 1331% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 89.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 99% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 86% 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.
Cheaper than its peers
It trades 66% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

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

1EBITDA margin holds above 97%✓ 99.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹62 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 86%✓ 89.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 49.7x✓ 6.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

10 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹461 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.9x

Cheap

Cheap against the generic band

P/B Ratio

3.95x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹8.65

Profitable

Profitable on a per-share basis

ROE

69.3%

Strong

Strong capital efficiency

ROCE

89.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.05x

Low

Conservative leverage

Revenue Growth (YoY)

1196.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

1054.8%

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

-₹62 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-45.5%

Weak

Thin margins leave little room for error

Net Margin

50.2%

Good

Strong bottom-line conversion

Current Ratio

5.55

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.94

Defensive

Steadier than the market

52W Range Position

89%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

59.2 / 57.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

65.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	—	₹8 Cr	₹106 Cr	—
EBITDA	-₹1 Cr	-₹0 Cr	₹8 Cr	₹105 Cr	—
EBITDA Margin	—	—	98.1%	99.0%	—
PAT (Net Profit)	-₹1 Cr	-₹0 Cr	₹7 Cr	₹81 Cr	—
EPS	₹-1.92	₹-0.06	₹0.91	₹10.54	—
ROE	-13.0%	-1.7%	19.5%	69.3%	—
ROCE	-5.8%	-0.4%	22.4%	89.3%	—
Total Debt	₹5 Cr	—	—	₹0 Cr	-77.1%
Free Cash Flow	₹2 Cr	-₹1 Cr	₹2 Cr	-₹62 Cr	—

🟢 EBITDA has turned positive, from -₹1 Cr to ₹105 Cr.

🟡 EBITDA Margin has held roughly flat at 99.0% over 3 years.

🟢 PAT (Net Profit) has turned positive, from -₹1 Cr to ₹81 Cr.

🟢 EPS has turned positive, from ₹-1.92 to ₹10.54.

🟢 ROE has risen from -13.0% to 69.3% over 3 years (+82.3 pts).

🟢 ROCE has risen from -5.8% to 89.3% over 3 years (+95.1 pts).

🟢 Total Debt has shrunk at 77.1% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹62 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹141 Cr

Total Liabilities

₹24 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹62 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

88.6%

Peer Comparison

Company	P/E	ROE
NTPC LTD	11.0x	13.7%
POWER GRID CORP. LTD.	14.6x	15.8%
TATA POWER CO LTD	29.3x	9.8%
ADANI POWER LTD	26.5x	21.9%

Recent News

1 positive1 mixed4 general

Rajasthan Securities Ltd is Rated Buy

MarketsMojo, 14 Oct

Rajasthan Securities Limited (526873) Company Information

Simply Wall Street, 24 Sept

Rajasthan Securities AGM passes resolutions with 99.99% support

scanx.trade, 22 Sept

GUJENERGY Stock Price and Chart — NSE:GUJENERGY

TradingView, 20 Sept

Rajasthan Securities standalone net profit rises 9025.37% in the March 2026 quarter

Business Standard, 29 MayResults

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

ACME Solar Share Price: 53.7 MW BESS Phase Commissioned

Univest, 01 OctCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Valuation

MiddlingGrowth

WeakRisk

Points for each in the Score ↑

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. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑