Rasandik Engineering Industries India Limited

Consumer Cyclical — Auto Parts · BSE

₹55.50−₹1.73 (−3.02%)

DalalBaazaar Score

33 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by short-term liabilities exceed short-term assets, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

Rasandik Engineering Industries India Limited manufactures and sells sheet metal components, muffler assemblies, fuel tanks, tools and dies for motor vehicles, and spare parts in India.

IndustryAuto Parts

SectorConsumer Cyclical

Employees52

Annual revenue₹64 Cr

How does it make money?

Turns over ₹64 Cr a year. Of every ₹100 of sales, about ₹-10 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 52 employees supports ₹1.24 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.24 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS 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 -4.3% 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 ROE23.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -54% while net margin moved +345% 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-54%

Margin effect+345%

DalalBaazaar Score

33/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 23.0% a year
✗ Profit fell 19.8% in the latest year

Quality vs. Valuation

Company Quality

29/ 100

Weak

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

Valuation

30/ 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

128.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 71% over 3 years.
Very low debt
Debt/Equity of 0.25x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from -3.5% to -7.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 4.4% to -4.3% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -2.6x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹7 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.7 points, from 6.3% to 0.7%.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.57 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 71% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹1 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?

Margins are being competed away
EBITDA margin has fallen from 6.3% to 0.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 51.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from -3.5% to -7.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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 -1%✓ 0.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 51.3x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ -2.6x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ -4.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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 · 2 neutral · 5 weak

Market Cap

₹33 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

0.37x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-10.52

Loss-making

Negative earnings per share — the business is losing money

ROE

-7.5%

Weak

Weak capital efficiency

ROCE

-4.3%

Weak

Low return on total capital employed

Debt/Equity

0.25x

Low

Conservative leverage

Revenue Growth (YoY)

26.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-19.8%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-2.4%

Weak

Thin margins leave little room for error

Net Margin

-8.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.57

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.46

Defensive

Steadier than the market

52W Range Position

23%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

58.7 / 59.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

32.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹141 Cr	₹81 Cr	₹58 Cr	₹64 Cr	-23.0%
EBITDA	₹9 Cr	-₹6 Cr	-₹2 Cr	₹0 Cr	-63.6%
EBITDA Margin	6.3%	-7.8%	-2.9%	0.7%	—
PAT (Net Profit)	-₹3 Cr	₹7 Cr	-₹6 Cr	-₹7 Cr	—
EPS	₹-5.52	₹11.93	₹-9.35	₹-11.2	—
ROE	-3.5%	7.1%	-5.9%	-7.5%	—
ROCE	4.4%	11.8%	-9.3%	-4.3%	—
Total Debt	₹76 Cr	₹40 Cr	₹25 Cr	₹22 Cr	-33.8%
Free Cash Flow	₹10 Cr	₹1 Cr	₹4 Cr	₹1 Cr	-54.0%

🔴 Revenue has shrunk at 23.0% a year over 3 years.

🔴 EBITDA has shrunk at 63.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 6.3% to 0.7% over 3 years (-5.7 pts).

🔴 ROE has fallen from -3.5% to -7.5% over 3 years (-3.9 pts).

🔴 ROCE has fallen from 4.4% to -4.3% over 3 years (-8.7 pts).

🟢 Total Debt has shrunk at 33.8% a year over 3 years.

🔴 Free Cash Flow has shrunk at 54.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹147 Cr

Total Liabilities

₹57 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

65.0%

Corporate Actions

Ex-Dividend Date

04 Sept 2008

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 mixed5 general

Rasandik Engineering Industries India Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 08 Oct

Rasandik Engineering Industries India Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 10 Sept

Top 56 Auto Ancillary Stocks In India For October 2026

Samco, 08 Oct

Rasandik Engineering Industries India Ltd. Peer Comparison – Compare with Others

Value Research, 10 Sept

Rasandik Engineering Industries India Ltd Share Price

Business Today, 31 Jan

Q4 results 2026: Lenskart to Grasim among companies to declare Q4 results today; check full list here

Livemint, 20 MayResults

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

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. 3 high-severity red flags sit above this conclusion and should be read first.

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