Raasi Refractories Limited

Basic Materials — Building Materials · BSE

₹18.50₹0.00 (0.00%)

DalalBaazaar Score

16 / 100

🔴 Poor

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, with both sales and profits growing well. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

Raasi Refractories Limited engages in the manufacture and sale of refractory bricks and allied products in India. It offers basic, fire clay and high alumina, and insulation refractories, as well as monolithic products.

IndustryBuilding Materials

SectorBasic Materials

Annual revenue₹55 Cr

How does it make money?

Turns over ₹55 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹-3 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are ULTRATECH CEMENT LIMITED, GRASIM INDUSTRIES LTD, AMBUJA CEMENTS LTD, SHREE CEMENT 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 19.0% 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 ROE7.4%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -6% while net margin moved -87% 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-6%

Margin effect-87%

DalalBaazaar Score

16/ 100

Poor

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

15/ 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.

Historical Valuation

Current P/E

28.5x

3Y Median

40.5x

40 monthly readings · mean 57.2x · range 5.2x–150.8x

Sector Median

36.2x

median of 4 sector peers

🟢Current valuation is approximately 30% below its 3y median of 40.5x. 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 21% below the peer median of 36.2x.

vs. its own history

Cheap

40.5x median over 40 months · -30%

vs. sector peers

Cheap

36.2x median of 4 peers · -21%

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

—

PEG

0.60

What's Good / What's Bad

🟢 What's Going Well1

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

8 items require attention · 5 high · 3 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.1x — little room if earnings dip.
🔴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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 8.3 points, from 5.6% to -2.8%.
🔴Inventory building faster than salesFinancial
Inventory up 2353% against revenue up -6% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 39% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹8 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 88% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 30% 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 21% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
Margins are being competed away
EBITDA margin has fallen from 5.6% to -2.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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
5 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

1EBITDA margin holds above -5%✓ -2.8%
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.
3Interest cover stays above 3x✗ 1.1x
How much operating profit can fall before interest stops being comfortably covered.
4Valuation vs its own median of 40.5x✓ 28.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 10 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ 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

3 good · 5 neutral · 3 weak

Market Cap

₹9 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

28.5x

Fair

Fairly valued against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹0.65

Profitable

Profitable on a per-share basis

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

19.0%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

33.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

47.5%

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 burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

5.9%

Average

Average margins

Net Margin

0.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.02

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.24

Defensive

Steadier than the market

52W Range Position

32%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

18.7 / 18.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

16.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹59 Cr	₹40 Cr	₹36 Cr	₹55 Cr	-2.2%
EBITDA	₹3 Cr	₹3 Cr	₹2 Cr	-₹2 Cr	—
EBITDA Margin	5.6%	7.6%	4.6%	-2.8%	—
PAT (Net Profit)	₹1 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-50.2%
EPS	₹1.83	₹0.63	₹0.19	₹0.23	-49.9%
ROCE	79.4%	36.7%	30.2%	19.0%	—
Total Debt	₹27 Cr	₹29 Cr	₹31 Cr	₹37 Cr	+11.5%
Free Cash Flow	₹20 Cr	₹0 Cr	₹1 Cr	-₹8 Cr	—

🔴 Revenue has shrunk at 2.2% a year over 3 years.

🔴 EBITDA has turned negative, from ₹3 Cr to -₹2 Cr.

🔴 EBITDA Margin has fallen from 5.6% to -2.8% over 3 years (-8.3 pts).

🔴 PAT (Net Profit) has shrunk at 50.2% a year over 3 years.

🔴 EPS has shrunk at 49.9% a year over 3 years.

🔴 ROCE has fallen from 79.4% to 19.0% over 3 years (-60.4 pts).

🔴 Total Debt has grown at 11.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹20 Cr to -₹8 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹55 Cr

Total Liabilities

₹69 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹7 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.9%

Peer Comparison

Company	P/E	ROE
ULTRATECH CEMENT LIMITED	37.6x	11.1%
GRASIM INDUSTRIES LTD	34.8x	5.5%
AMBUJA CEMENTS LTD	20.4x	7.4%
SHREE CEMENT LIMITED	49.7x	7.0%

Recent News

2 positive4 general

Raasi Refractories Q1 Results: Net profit up 49% YoY to ₹41.21 lakh

scanx.trade, 17 AugResults

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

Raasi Refractories appoints Voruganti Eswaraiah as Independent Director

scanx.trade, 03 Oct

Raasi Refractories holds 44th AGM on September 30, 2026

scanx.trade, 30 Sept

Century Extrusions standalone net profit rises 59.75% in the June 2026 quarter

Business Standard, 14 AugResults

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

Raasi Refractories appoints Moganti Sundeep as secretarial auditor

scanx.trade, 03 Oct

JINDAL SUPREME (INDIA) LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 24 Sept

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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

WeakBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Raasi Refractories Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 5 high-severity red flags sit above this conclusion and should be read first.

2 of 4 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑