Rajshree Sugars & Chemicals Limited

Consumer Defensive — Confectioners · NSE

₹31.00+₹0.28 (+0.91%)

DalalBaazaar Score

35 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by moderate debt load, negative free cash flow, the company is currently loss-making.

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, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Rajshree Sugars & Chemicals Limited engages in the sugar, distillery, power, and biotechnology businesses in India. It operates in three segments: Sugar, Cogeneration, and Distillery.

IndustryConfectioners

SectorConsumer Defensive

Employees998

Annual revenue₹545 Cr

How does it make money?

Turns over ₹545 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 998 employees supports ₹54.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹54.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES 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?Little sign of one

Returns on capital of 3.1% 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 ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -29% while net margin moved -118% 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-29%

Margin effect-118%

DalalBaazaar Score

35/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 10.7% a year
✗ Profit fell 86.0% in the latest year

Quality vs. Valuation

Company Quality

31/ 100

Weak

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

Valuation

44/ 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

N/A

No P/E — the company is lossmaking

EV/EBITDA

10.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 17% over 3 years.
Return on equity is rising
ROE has improved from -3.6% to 0.4%.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 5.5% to 3.1% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.1x — little room if earnings dip.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 1.7x to 1.1x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹24 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 17% 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?

The debt load needs earnings to hold up
Debt is 8.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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 5%✓ 7.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 8.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹24 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.1x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ 3.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

1 good · 4 neutral · 6 weak

Market Cap

₹103 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

0.39x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-2.43

Loss-making

Negative earnings per share — the business is losing money

ROE

0.4%

Weak

Weak capital efficiency

ROCE

3.1%

Weak

Low return on total capital employed

Debt/Equity

1.26x

Moderate

Moderate leverage

Revenue Growth (YoY)

8.7%

Modest

Modest growth

Profit Growth (YoY)

-86.0%

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

-₹24 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-12.9%

Weak

Thin margins leave little room for error

Net Margin

-1.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.03

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.43

Defensive

Steadier than the market

52W Range Position

36%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

30.2 / 32.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

45.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹765 Cr	₹762 Cr	₹641 Cr	₹545 Cr	-10.7%
EBITDA	₹55 Cr	₹68 Cr	₹50 Cr	₹39 Cr	-10.7%
EBITDA Margin	7.2%	8.9%	7.9%	7.2%	—
PAT (Net Profit)	-₹9 Cr	₹14 Cr	₹8 Cr	₹1 Cr	—
EPS	₹-2.71	₹4.15	₹2.44	₹0.34	—
ROE	-3.6%	5.2%	3.1%	0.4%	—
ROCE	5.5%	7.7%	5.0%	3.1%	—
Total Debt	₹401 Cr	₹393 Cr	₹299 Cr	₹332 Cr	-6.1%
Free Cash Flow	₹12 Cr	₹34 Cr	₹78 Cr	-₹24 Cr	—

🔴 Revenue has shrunk at 10.7% a year over 3 years.

🔴 EBITDA has shrunk at 10.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 7.2% over 3 years.

🟢 PAT (Net Profit) has turned positive, from -₹9 Cr to ₹1 Cr.

🟢 EPS has turned positive, from ₹-2.71 to ₹0.34.

🟢 ROE has risen from -3.6% to 0.4% over 3 years (+4.0 pts).

🔴 ROCE has fallen from 5.5% to 3.1% over 3 years (-2.4 pts).

🟢 Total Debt has shrunk at 6.1% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹12 Cr to -₹24 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹706 Cr

Total Liabilities

₹443 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

-₹20 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

2.5%

Insider Holding

52.2%

Corporate Actions

Ex-Dividend Date

16 Aug 2017

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 mixed5 general

Rajshree Sugars & Chemicals Ltd. (RAJSREESUG) Share Price Rises 8.99% Today

Univest, 20 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Rajshree Sugars releases September 2026 operational data for three units

scanx.trade, 07 Oct

Rajshree Sugars & Chemicals Share Price Forecast to 2030

Univest, 23 Jul

Rajshree Sugars sugar production rises in July 2026

scanx.trade, 07 Aug

Dwarikesh Sugar to Balrampur Chini: What’s behind an up to 10% surge in sugar stocks today? Explained

Livemint, 10 Nov

Rajshree Sugars & Chemicals Share: Bull Case vs Bear Case for 2026

Univest, 18 Sept

Watch Items

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

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation

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

4 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑