Rajeshwari Cans Limited

Consumer Cyclical — Packaging & Containers · BSE

₹15.74+₹0.49 (+3.21%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Rajeshwari Cans Limited engages in the manufacturing and sale of tin containers for ink and color manufacturing units in India. It offers tin containers of various sizes used for packing of tobacco and snuff.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees117

Annual revenue₹43 Cr

How does it make money?

Turns over ₹43 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 117 employees supports ₹36.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹36.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 21.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 17.1% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +31% 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+31%

Margin effect+61%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.00 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

71/ 100

Good

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

Valuation

88/ 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

7.4x

3Y Median

110.4x

40 monthly readings · mean 94.5x · range 8.3x–261.3x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 93% below its 3y median of 110.4x. 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 89% below the peer median of 69.2x.

vs. its own history

Cheap

110.4x median over 40 months · -93%

vs. sector peers

Cheap

69.2x median of 4 peers · -89%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

4.3x

PEG

0.26

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 8.0% to 12.9% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 12.2% to 15.7%.
Return on capital is rising
ROCE has improved from 16.2% to 21.2%.
High return on capital employed
ROCE of 21.2% is the mark of a business that converts capital into profit efficiently.
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

3 items require attention · 2 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.
🔴Receivables growing faster than salesFinancial
Receivables up 137% against revenue up 31% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 47% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 21.2% 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 8.0% to 12.9%. 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 93% 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 89% 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?

Sales are being booked faster than collected
Receivables are up 137% against revenue up 31%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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

1EBITDA margin holds above 11%✓ 12.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 7% a year✓ 9.3% CAGR
Latest reported year was -1.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 18%✓ 21.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹17 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.4x

Cheap

Cheap against the generic band

P/B Ratio

1.16x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.14

Profitable

Profitable on a per-share basis

ROE

17.1%

Strong

Strong capital efficiency

ROCE

21.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.53x

Low

Conservative leverage

Revenue Growth (YoY)

-1.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

7.6%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

8.1%

Good

Assets are working hard

Operating Margin

9.1%

Average

Average margins

Net Margin

5.3%

Average

Average bottom-line conversion

Current Ratio

1.38

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.00

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

15.7 / 16.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹33 Cr	₹35 Cr	₹40 Cr	₹43 Cr	+9.3%
EBITDA	₹3 Cr	₹3 Cr	₹5 Cr	₹5 Cr	+28.3%
EBITDA Margin	8.0%	8.2%	12.2%	12.9%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹2 Cr	₹2 Cr	+28.2%
EPS	₹1.02	₹2.53	₹1.83	—	—
ROE	12.2%	13.2%	16.1%	15.7%	—
ROCE	16.2%	16.6%	19.8%	21.2%	—
Total Debt	₹5 Cr	₹4 Cr	₹6 Cr	₹8 Cr	+13.6%
Free Cash Flow	-₹0 Cr	₹1 Cr	-₹3 Cr	₹1 Cr	—

🟢 Revenue has grown at 9.3% a year over 3 years.

🟢 EBITDA has grown at 28.3% a year over 3 years.

🟢 EBITDA Margin has risen from 8.0% to 12.9% over 3 years (+4.9 pts).

🟢 PAT (Net Profit) has grown at 28.2% a year over 3 years.

🟢 ROE has risen from 12.2% to 15.7% over 3 years (+3.5 pts).

🟢 ROCE has risen from 16.2% to 21.2% over 3 years (+5.0 pts).

🔴 Total Debt has grown at 13.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹27 Cr

Total Liabilities

₹13 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

69.9%

Corporate Actions

Ex-Dividend Date

16 Sept 2022

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 negative5 general

Rajeshwari Cans Ltd. Clarifies Recent Price Movement to BSE Surveillance

scanx.trade, 21 Jan

EMMBI INDUSTRIES Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 15 Oct

Rajeshwari Cans CFO Soy Itty resigns citing personal commitments

scanx.trade, 22 SeptManagement

🔴Potentially negativeA senior departure, and an auditor's resignation especially, is worth understanding before anything else in this report.

DECNGOLD Stock Price and Chart — NSE:DECNGOLD

TradingView, 20 Apr

Rajeshwari Cans (BSE:543285) - Stock Analysis

Simply Wall Street, 17 Apr

1:1 Bonus Shares Declared: Record Date In Due Course of Time; Unlock The Deal?

Goodreturns, 01 Nov

Watch Items

Revenue growth is negative (-1.8%) on the latest reported period — check if this is one-off or a trend.
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.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

MiddlingRisk

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

All 5 tripwires holding · see Key things to watch ↑