Raw Edge Industrial Solutions Limited

Basic Materials — Building Materials · BSE

₹15.50−₹0.26 (−1.65%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Raw Edge Industrial Solutions Limited manufactures and trades in minerals in India.

IndustryBuilding Materials

SectorBasic Materials

Employees43

Annual revenue₹36 Cr

How does it make money?

Turns over ₹36 Cr a year. Of every ₹100 of sales, about ₹-0 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 43 employees supports ₹83.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹83.2 lakh

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?Little sign of one

Returns on capital of 3.9% 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 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 -32% while net margin moved -960% 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-32%

Margin effect-960%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 12.2% a year

Quality vs. Valuation

Company Quality

36/ 100

Weak

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

Valuation

65/ 100

Fair

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

38.8x

3Y Median

1352.0x

40 monthly readings · mean 1462.5x · range 657.5x–2646.5x

Sector Median

36.2x

median of 4 sector peers

🟢Current valuation is approximately 97% below its 3y median of 1352.0x. 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 is priced broadly in line with the peer median of 36.2x.

vs. its own history

Cheap

1352.0x median over 40 months · -97%

vs. sector peers

Fair

36.2x median of 4 peers · +7%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

12.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 28% over 3 years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 6.3% to 3.9% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 3 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 0.9x — 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.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 28% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 97% 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.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 6.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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
3 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%✓ 7.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 6.5x
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✗ 0.9x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 3.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

5 good · 4 neutral · 2 weak

Market Cap

₹16 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

38.8x

Fair

Fairly valued against the generic band

P/B Ratio

0.75x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.4

Profitable

Profitable on a per-share basis

ROE

-0.6%

Weak

Weak capital efficiency

ROCE

3.9%

Weak

Low return on total capital employed

Debt/Equity

0.80x

Moderate

Moderate leverage

Revenue Growth (YoY)

34.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

87.3%

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

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

1.9%

Weak

Thin margins leave little room for error

Net Margin

1.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.52

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.48

Defensive

Steadier than the market

52W Range Position

18%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

14.6 / 15.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

60.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹53 Cr	₹45 Cr	₹45 Cr	₹36 Cr	-12.2%
EBITDA	₹4 Cr	₹3 Cr	₹3 Cr	₹3 Cr	-14.0%
EBITDA Margin	7.7%	6.8%	6.8%	7.2%	—
PAT (Net Profit)	₹0 Cr	-₹1 Cr	-₹1 Cr	-₹0 Cr	—
EPS	₹0.02	₹-0.58	₹-1.03	₹-0.13	—
ROE	0.1%	-2.7%	-5.0%	-0.6%	—
ROCE	6.3%	3.8%	3.9%	3.9%	—
Total Debt	₹23 Cr	₹23 Cr	₹19 Cr	₹17 Cr	-10.3%
Free Cash Flow	₹3 Cr	₹2 Cr	₹6 Cr	₹3 Cr	+0.6%

🔴 Revenue has shrunk at 12.2% a year over 3 years.

🔴 EBITDA has shrunk at 14.0% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 7.2% over 3 years.

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 EPS has turned negative, from ₹0.02 to ₹-0.13.

🟡 ROE has held roughly flat at -0.6% over 3 years.

🔴 ROCE has fallen from 6.3% to 3.9% over 3 years (-2.4 pts).

🟢 Total Debt has shrunk at 10.3% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (0.6% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹45 Cr

Total Liabilities

₹25 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

82.8%

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

6 general

Raw Edge Industrial Solutions seeks approval for ₹175 crore related-party loans

scanx.trade, 31 Jul

RAW Edge Industrial Solutions Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Raw Edge Industrial Solutions Ltd (BSE: RAWEDGE) Business Overview and Financial Snapshot

Kalkine India, 10 Sept

Digitide Solutions Ltd leads losers in 'B' group

Business Standard, 07 Jul

RUNWAL ENTERPRISES LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 05 Oct

RAW Edge Industrial Solutions Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial 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 ↑