Rapid Investments Limited

Financial Services — Credit Services · BSE

₹85.00−₹4.00 (−4.49%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, 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 Rapid Investments Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Rapid Investments Limited, a non-banking financial company, engages in granting of mortgage loans and advances in India. It is also involved in the provision of financial advisory services and business for mutual investments, as well as provides loan against property.

IndustryCredit Services

SectorFinancial Services

Annual revenue₹2 Cr

How does it make money?

Turns over ₹2 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹34 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK 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?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +617% while net margin moved -36% 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+617%

Margin effect-36%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.65 — 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

65/ 100

Good

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

Valuation

34/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

500.0x

3Y Median

440.7x

40 monthly readings · mean 35201.8x · range 47.9x–134430.0x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 13% above its 3y median of 440.7x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 2842% above the peer median of 17.0x.

vs. its own history

Fair

440.7x median over 40 months · +13%

vs. sector peers

Expensive

17.0x median of 4 peers · +2842%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

26.6x

PEG

7.55

What's Good / What's Bad

🟢 What's Going Well2

Return on capital is rising
ROCE has improved from 3.0% to 5.9%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

4 items require attention · 2 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.5x — little room if earnings dip.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 14.0 points, from 48.0% to 34.0%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 6.9x to 1.5x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 50% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Margins are being competed away
EBITDA margin has fallen from 48.0% to 34.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 2842% above the peer median. That premium needs a reason that persists, or it closes.
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 70% a year✓ 92.9% CAGR
Latest reported year was 25.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 32%✓ 34.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 1.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 1.5x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 440.7x✓ 500.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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

2 good · 4 neutral · 5 weak

Market Cap

₹18 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

500.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.62x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.17

Profitable

Profitable on a per-share basis

ROE

1.4%

Weak

Weak capital efficiency

ROCE

5.9%

Weak

Low return on total capital employed

Debt/Equity

0.93x

Moderate

Moderate leverage

Revenue Growth (YoY)

25.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-90.5%

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

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

23.1%

Good

Healthy core-business profitability

Net Margin

7.3%

Average

Average bottom-line conversion

Current Ratio

1.36

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.65

Defensive

Steadier than the market

52W Range Position

46%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

84.0 / 86.4

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

63.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹2 Cr	₹1 Cr	₹2 Cr	+92.9%
EBITDA	₹0 Cr	₹0 Cr	₹3 Cr	₹1 Cr	+71.9%
EBITDA Margin	48.0%	26.7%	229.4%	34.0%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+66.2%
EPS	₹0.24	₹1.43	₹0	—	—
ROE	1.6%	8.6%	3.2%	1.4%	—
ROCE	3.0%	15.2%	3.3%	5.9%	—
Free Cash Flow	₹0 Cr	₹0 Cr	₹4 Cr	-₹2 Cr	—

🟢 Revenue has grown at 92.9% a year over 3 years.

🟢 EBITDA has grown at 71.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 48.0% to 34.0% over 3 years (-14.0 pts).

🟢 PAT (Net Profit) has grown at 66.2% a year over 3 years.

🟡 ROE has held roughly flat at 1.4% over 3 years.

🟢 ROCE has risen from 3.0% to 5.9% over 3 years (+2.9 pts).

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹22 Cr

Total Liabilities

₹11 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

91.8%

Corporate Actions

Ex-Dividend Date

31 Aug 2017

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

6 general

Rapid Investments Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 30 Aug

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Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth · Valuation

WeakProfitability · Risk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Return on equity stays above 8%; Interest cover stays above 3x · see Key things to watch ↑