RAP Corp Limited

Real Estate — Real Estate - Diversified · BSE

₹32.00−₹2.00 (−5.88%)

DalalBaazaar Score

74 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:51 pm

Understanding the Business

Company site ↗

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

What does this company do?

RAP Corp Limited engages in ownership, development, management, and leasing of real estate assets in India. It constructs malls and multiplexes. The company is also involved in the sale/purchase land, building, properties, office. etc.

IndustryReal Estate - Diversified

SectorReal Estate

Employees16

Annual revenue₹68 Cr

How does it make money?

Turns over ₹68 Cr a year. Of every ₹100 of sales, about ₹65 reaches shareholders as profit, with ₹65 left at the operating level before interest, tax and depreciation. Each of its 16 employees supports ₹4.24 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.24 Cr

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY 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?Some evidence

ROCE of 68.7% 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 ROE10.3%

DalalBaazaar Score

74/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.41 — 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

Quality vs. Valuation

Company Quality

76/ 100

Good

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

Valuation

87/ 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

0.4x

Sector Median

30.2x

median of 3 sector peers

🟢Against its sector it trades 99% below the peer median of 30.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

30.2x median of 3 peers · -99%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

0.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -9.4% to 89.6%.
Return on capital is rising
ROCE has improved from -7.9% to 68.7%.
High return on capital employed
ROCE of 68.7% 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

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 449% over 3 years, from ₹2 Cr to ₹13 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 68.7% 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.
Cheaper than its peers
It trades 99% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹8 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?

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 63%✓ 64.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹8 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 66%✓ 68.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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)
✓ 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

8 good · 3 neutral · 0 weak

Market Cap

₹19 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

0.4x

Cheap

Cheap against the generic band

P/B Ratio

0.34x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹74.27

Profitable

Profitable on a per-share basis

ROE

89.6%

Strong

Strong capital efficiency

ROCE

68.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.05x

Low

Conservative leverage

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

6425.1%

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

₹8 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-88.7%

Weak

Thin margins leave little room for error

Net Margin

65.3%

Good

Strong bottom-line conversion

Current Ratio

10.52

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

33%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

32.2 / 34.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

52.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
EBITDA	-₹1 Cr	-₹1 Cr	-₹1 Cr	₹44 Cr	—
PAT (Net Profit)	-₹1 Cr	-₹1 Cr	-₹1 Cr	₹44 Cr	—
EPS	₹-1.42	₹-1.34	₹-1.18	₹74.55	—
ROE	-9.4%	-9.8%	-11.7%	89.6%	—
ROCE	-7.9%	-12.8%	-5.1%	68.7%	—
Total Debt	₹2 Cr	₹3 Cr	₹43 Cr	₹13 Cr	+76.4%
Free Cash Flow	-₹1 Cr	-₹1 Cr	-₹9 Cr	₹8 Cr	—

🟢 EBITDA has turned positive, from -₹1 Cr to ₹44 Cr.

🟢 PAT (Net Profit) has turned positive, from -₹1 Cr to ₹44 Cr.

🟢 EPS has turned positive, from ₹-1.42 to ₹74.55.

🟢 ROE has risen from -9.4% to 89.6% over 3 years (+99.0 pts).

🟢 ROCE has risen from -7.9% to 68.7% over 3 years (+76.6 pts).

🔴 Total Debt has grown at 76.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹8 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹68 Cr

Total Liabilities

₹19 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹8 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.6%

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

1 positive1 negative4 general

RAP CORP LIMITED Share Price

Upstox, 05 May

Rap Corp Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 04 Sept

RAP Corp FY26 profit rises on Agra property sale

scanx.trade, 22 MayResults

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

Rap Corp reappoints Rupinder Singh Arora as MD for five-year term

scanx.trade, 02 Oct

Responsive Industries consolidated net profit declines 94.51% in the June 2026 quarter

Business Standard, 14 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Rap Corp Ltd

Equitypandit, 16 Jul

Watch Items

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

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.

All 4 tripwires holding · see Key things to watch ↑