Ravelcare Limited

Consumer Defensive — Household & Personal Products · BSE

₹91.00−₹7.50 (−7.61%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:52 pm

Understanding the Business

Company site ↗

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

What does this company do?

Ravelcare Limited offers personal care products under the Ravel brand in India.

IndustryHousehold & Personal Products

SectorConsumer Defensive

Employees23

Annual revenue₹27 Cr

How does it make money?

Turns over ₹27 Cr a year. Of every ₹100 of sales, about ₹19 reaches shareholders as profit, with ₹27 left at the operating level before interest, tax and depreciation. Each of its 23 employees supports ₹1.17 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.17 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., DABUR INDIA LTD, ITC LTD, 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?Some evidence

ROCE of 18.9% 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 ROE27.4%

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 +672% while net margin moved +61% 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+672%

Margin effect+61%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✗ 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

71/ 100

Good

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

Valuation

81/ 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

9.9x

1.0Y Median

18.5x

12 monthly readings · mean 17.9x · range 12.3x–25.9x

Sector Median

38.6x

median of 4 sector peers

🟢Current valuation is approximately 47% below its 1.0y median of 18.5x. 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 74% below the peer median of 38.6x.

vs. its own history

Cheap

18.5x median over 12 months · -47%

vs. sector peers

Cheap

38.6x median of 4 peers · -74%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.4x

PEG

0.08

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 14.9% to 27.2% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 580.0% to 13.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 723.1% to 18.9% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹20 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.9% 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.
Margin expansion has further to run
EBITDA margin has risen from 14.9% to 27.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 47% 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 74% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Returns on shareholder capital are falling
ROE has dropped from 580.0% to 13.8%. 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

1Revenue growth stays above 73% a year✓ 97.6% CAGR
Latest reported year was 7.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 25%✓ 27.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹20 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 16%✓ 18.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 18.5x✓ 9.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 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
✓ 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 · 6 neutral · 1 weak

Market Cap

₹62 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.9x

Cheap

Cheap against the generic band

P/B Ratio

1.67x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.2

Profitable

Profitable on a per-share basis

ROE

21.6%

Strong

Strong capital efficiency

ROCE

18.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

7.9%

Modest

Modest growth

Profit Growth (YoY)

1.3%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

16.8%

Good

Assets are working hard

Operating Margin

21.5%

Good

Healthy core-business profitability

Net Margin

19.1%

Good

Strong bottom-line conversion

Current Ratio

4.42

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

99.0 / 105.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

26.9

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3 Cr	₹22 Cr	₹25 Cr	₹27 Cr	+97.6%
EBITDA	₹1 Cr	₹7 Cr	₹7 Cr	₹7 Cr	+141.6%
EBITDA Margin	14.9%	31.3%	28.4%	27.2%	—
PAT (Net Profit)	₹0 Cr	₹5 Cr	₹5 Cr	₹5 Cr	+131.6%
EPS	₹0.6	₹7.32	₹7.41	—	—
ROE	580.0%	98.6%	49.2%	13.8%	—
ROCE	723.1%	134.0%	67.8%	18.9%	—
Total Debt	₹0 Cr	₹0 Cr	—	—	—
Free Cash Flow	₹1 Cr	₹6 Cr	-₹3 Cr	-₹20 Cr	—

🟢 Revenue has grown at 97.6% a year over 3 years.

🟢 EBITDA has grown at 141.6% a year over 3 years.

🟢 EBITDA Margin has risen from 14.9% to 27.2% over 3 years (+12.3 pts).

🟢 PAT (Net Profit) has grown at 131.6% a year over 3 years.

🔴 ROE has fallen from 580.0% to 13.8% over 3 years (-566.2 pts).

🔴 ROCE has fallen from 723.1% to 18.9% over 3 years (-704.2 pts).

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹20 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹40 Cr

Total Liabilities

₹3 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹17 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

84.7%

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
DABUR INDIA LTD	34.7x	17.2%
ITC LTD	16.6x	27.4%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

6 general

Strong market debut: Ravelcare shares list at 55% premium to SME IPO price

Moneycontrol.com, 08 Dec

Ravelcare Limited Share Price - Live RAVEL Stock Price & Chart

Upstox, 05 May

RAVEL Stock Price and Chart — BSE:RAVEL

TradingView, 08 Dec

Stellar IPO Listing! Ravelcare share price lists at ₹201 on BSE SME, surging 54.6% from issue price

Livemint, 08 Dec

Ravelcare shares list at 55% premium over IPO price on BSE SME platform

The Economic Times, 08 Dec

Ravelcare Ltd. IPO Allotment Status: Check Overall Subscription & Steps to Verify Status

Groww, 03 Dec

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

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.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑